KUALA LUMPUR (Feb 22): MGB Bhd, a 56.1%-owned unit of LBS Bina Group Bhd, has been awarded a RM150.7 million to design and build two blocks of serviced apartments and its relevant facilities in Sepang, Selangor, from its sister company.

The contract was awarded by Seloka Sinaran Sdn Bhd, which is also a unit of LBS Bina, MGB announced to Bursa Malaysia today.

The job is expected to take 18 months and is scheduled to start next month, to be completed in August 2020.

"The contract will increase and enhance the existing order book of the Company and its group of companies. With the contract in hand, the group’s current outstanding order book is approximately RM2.02 billion," said MGB.

Separately, MGB announced that its net profit for the quarter ended Dec 31, 2018 (4QFY18) fell 41.4% to RM3.49 million from RM5.96 million a year ago, as revenue shrank 5.1% to RM177.45 million from RM186.89 million, as contribution from both its construction and property segments declined.

The profitability of the quarter was also impacted by a net loss incurred by its joint venture manufacturing subsidiary, of RM2.31 million.

For the full year (FY18), its net profit fell 7.1% to RM31.72 million from RM34.13 million, on lower profit achieved in its property development segment and higher operating expenses, which could not be offset by the 8.5% rise in revenue during the quarter to RM751.27 million from RM692.64 million.

MGB shares closed 1 sen lower at 71 sen, giving it a market capitalisation of RM352.79 million. LBS Bina also retreated 1 sen to 68.5 sen, which gave it a market value of RM1.07 billion.