MGB reports marginal rise in 2Q net profit

-A +A

KUALA LUMPUR (Aug 23): MGB Bhd’s net profit for the second quarter ended June 30, 2018 grew by a marginal 0.12% to RM10.02 million, from 10.01 million a year ago, on higher revenue contribution.

The LBS Bina Group unit’s earnings per share fell to 2.02 sen from 2.73 sen previously.

MGB said revenue grew 17.6% to RM200.26 million from RM170.29 million in the previous second quarter, mainly boosted by the construction segment following the recognition of additional variation order and profit upon finalisation of several major projects.

“The successful launching of service apartments (phase two) of the group’s development project since the 3rd quarter of 2017 has further contributed to the overall improvement of the result,” it said.

Total net profit for the first half of the financial year increased 10.5% to RM20.21 million or 4.08 sen per share, from RM18.29 million or 5.03 sen per share in the previous January-June period.

Six-month revenue came in 15.3% higher at RM369.33 million, against RM320.35 million a year earlier.

Going forward, the group said it possesses competitive advantages to continue tendering for infrastructure and housing construction projects to replenish its existing orderbook.

“The group will stay responsive and resilient in all business cycles and embrace new changes and developments introduced by the government from time to time in order to drive the group’s sustainable growth,” it added.

Shares in MGB rose 0.5 sen or 0.54% to 93 sen for a market capitalisation of RM462.03 million.