KUALA LUMPUR (May 27): Construction firm MGB Bhd [KL:MGB] has secured a contract worth RM189.35 million to undertake a multi-phase property development project in the Kuala Selangor district. 

The project was awarded by Anuar Aziz Architect on behalf of Kemudi Ehsan Sdn Bhd, said MGB in a bourse filing. Kemudi Ehsan is an indirect subsidiary of LBS Bina Group Bhd, which is a major shareholder of MGB with a 58.65% stake, thus making the contract a related-party transaction. 

MGB said the contract is for the development of a five-phase property development project in Ijok, with the first phase comprising 38 single-storey low-cost industrial terrace units and 96 two-storey terraced factories. 

Subsequent phases will involve a total of 116 units of three-storey semi-detached factories, six units of electrical substations, as well as 64 units of single-storey low-cost industrial terrace units. 

The project is expected to be completed within 18 months by Nov 26, 2025, the group said. 

MGB said this is its second property development contract win since the start of 2024, with the earlier one also from Anuar Aziz Architect to undertake a two-phase property development project in the Sepang district worth RM207.03 million. 

With the latest contract win, MGB said its outstanding order book stood at RM1.38 billion. 

MGB has reported a net profit of RM14.20 million for the first quarter ended March 31, 2024, up 18.2% from RM12.02 million a year earlier. Revenue rose 22.57% to RM217.88 million from RM177.76 million. 

MGB’s shares closed half a sen or 0.54% higher at 93 sen on Monday, valuing the group at RM550.24 million.