MGB wins RM35m contract to build residential villas in Saudi Arabia

KUALA LUMPUR (April 16): Construction firm MGB Bhd (KL:MGB) has bagged a RM34.76 million contract to build residential units in Jeddah, Saudi Arabia.

In an exchange filing on Wednesday, MGB said the contract was awarded to its wholly-owned subsidiary MGB International For Industry by Saudi real estate entity the Roshn Group Company. MGB has previously won other contracts from the Roshn Group, including the supply and installation of precast elements for the Roshn Alarous development in Jeddah.

Under the latest eight-month contract, the MGB subsidiary will be responsible for undertaking the construction of 75 units of villas for the Marafy Al-Arous Development Project, which is the Roshn Group’s first fully mixed-use development.

“The contract is expected to contribute positively to the future earnings and strengthen the order book of the group,” said MGB.

It added the contract is part of the group’s efforts to widen its presence in Saudi Arabia and contributes to its growth plans within the region.

AskEdge data shows MGB as currently trading at a price to earnings ratio of 4.9 times, which is the lowest among peers where the ratio is applicable (not loss-making or insufficient data).

This PE ratio is also the lowest compared to its historical valuation in recent years.

The company's price to net asset value ratio of 0.4 multiples is the lowest among peers and currently at its lowest level in recent years.

MGB shares closed one sen or 2.4% higher at 43 sen on Wednesday, giving the group a market capitalisation of RM254.4 million.

..........

EdgeProp's monthly print edition is out! Free delivery is available for selected regions. Subscribe now.