SELANGOR: MGB Bhd (MGB), a leading construction, property development and Industrialised Building System (IBS) precast concrete manufacturer and subsidiary of LBS Bina Group Bhd, today announced its unaudited financial results for the second quarter ended June 30, 2026 (2Q26).
In 2Q26, MGB recorded revenue of RM201.7mil, compared to RM216.4mil in the corresponding quarter of the previous financial year.
Year-on-Year (YoY) revenue moderated primarily due to lower contributions from the property development segment following the completion and vacant possession handover of several development projects.
The construction and trading segment revenue remained broadly stable YoY, with lower domestic contributions, as several projects were completed and new projects are still in the early stages of execution.
This was offset by higher contributions from overseas projects. Despite the lower revenue, MGB delivered a 12% YoY increase in profit after tax and non-controlling interests (Patami) to RM13.3mil, supported by effective cost optimisation, disciplined project execution and improved margins across both business segments.
For the six months ended June 30, 2026 (1H26), revenue stood at RM411.8mil, while Patami increased 16% YoY to RM27.5mil, demonstrating the resilience of its earnings despite revenue timing effects.
Commenting on the results, MGB group executive chairman Tan Sri Ir Dr Lim Hock San said, “Our second quarter performance reflects the robustness of the Group’s business model and the effectiveness of our disciplined execution.
“While revenue moderated during the quarter, our disciplined execution, operational efficiency, and prudent cost management enabled us to deliver stronger margins and improved profitability.
“Within our construction and trading segment, we remain focused on strengthening our position in Malaysia while growing our presence in the Kingdom of Saudi Arabia (KSA). As we continue to secure quality projects in our domestic market, KSA’s robust construction sector outlook presents attractive opportunities to deepen our presence.
“Having successfully established ourselves as a reputable main contractor, we are well positioned to capitalise on these opportunities to grow our international orderbook. This is evidenced by the recent award of a second main contract, with a value of RM44.7mil, directly from ROSHN Group Company, one of Saudi Arabia’s leading national real estate developers.
“This repeat award marks another significant step in our regional expansion journey, reinforcing ROSHN’s confidence in our capabilities and further strengthening our reputation as a trusted delivery partner in the Saudi Arabian market. As at June 30, 2026, the Group’s domestic construction orderbook stood at RM1.68bil, providing strong earnings visibility and a solid foundation for sustained growth.
“Within our property development segment, we successfully launched Project Idaman Cahaya Phase 3 during the quarter, with an estimated gross development value (GDV) of RM117.4mil. The project achieved a healthy take-up rate shortly after its launch, reflecting sustained demand for our developments.
“Together with our other ongoing projects, the Group’s unbilled sales stood at approximately RM0.29bil, providing healthy earnings visibility ahead.
“Property development remains a key growth pillar for the Group. Over the period from FY2026 to FY2028, we plan to launch new developments with a total estimated GDV of RM2.7bil, further strengthening our development pipeline and supporting sustainable earnings growth.
“With a strong pipeline of planned launches and disciplined execution, we expect unbilled sales to build progressively, enhancing earnings visibility and supporting the segment’s growth and future performance,” he said.
