KUALA LUMPUR (May 28): MGB Bhd said its unit has been awarded a RM134.7 million contract to develop a total of 674 units of double-storey terrace houses in Dengkil, Selangor.

The contract was awarded to MGB's wholly-owned subsidiary MITC Engineering Sdn Bhd, by Blee & W Architects Sdn Bhd on behalf of Seloka Sinaran Sdn Bhd.

Seloka Sinaran is a subsidiary of Main Market-listed LBS Bina Group Bhd, which is a major shareholder of MGB with a 59.868% stake.

In an exchange filing yesterday, MGB said the contract includes developing in Dengkil the 674 units of double storey houses, Tenaga Nasional substations, and other facilities including a security guard house, a community center with prayer area, and a management office.

The contract is split into phases and will commence this month for a date of completion by October 2020.

"The group 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 RM1.75 billion," said MGB.

In a separate filing, MGB announced a 70% drop in its net profit for the first quarter ended March 31, 2019 (1QFY19) to RM3.11 million from RM10.19 million in the corresponding quarter a year ago, despite revenue rising 20.4% to RM203.6 million from RM169.07 million previously.

The group attributed the lower profits to narrowing margins for its ongoing construction projects, net loss incurred by its subsidiary company, as well as higher finance and depreciation costs.

Shares in the thinly-traded MGB closed one sen or 1.3% lower yesterday at 74 sen, for a market capitalisation of RM367.9 million.