MGB BERHAD - Previously as ML GLOBAL BERHAD (update)
As at 30 September 2017, the Group's outstanding construction order book is approximately RM2.36 billion. The construction order book increased RM290 million compared to the previous quarter. This shows that the group is currently active tendering for construction work.
Using the order book of RM2.36 billion which have to be done in 3 years time, each quarter will have revenue of approximately RM 197 milliom. With profit margin of 5.5% (estimate), the net profit will be RM10.835 million. (EPS=2.36 cents)
Using the current price of RM 1.63 (as at 30/1/2018), the forward PE ratio will be 17.27 (RM 1.63 divide by RM 0.0944).
All this estimation above is without considering the contribution from property segment. Property segment, being the new segment to the Group since early June 2017, has contributed 21% to the rise of the revenue.
Recently, MGB Berhad is acquiring property development firm Multi Court Development Sdn Bhd for RM2.8 million. Multi Court owns a 9.35-hectare land in Batu Pahat, Johor on which a Unit Perumahan Penjawat Awam 1 Malaysia (PPA1M) project will be developed with an estimation gross development value of RM93.5 million. By doing this, MGB Berhad maybe will be getting more project from PPA1M.
This is just a short update from my previous post (http://drinvestment789.blogspot.my/2017/06/7-things-about-ml-global-bhd-mgb-7595.html).
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