FINANCIAL ANALYSIS OF MGB

1. Introduction
MGB Berhad (“MGB”) (formerly known as ML Global
Berhad), through its subsidiary companies, is a
comprehensive and fully integrated construction and
development company providing a full range of design and
construction and development services including design and
build, project management, civil engineering, value
engineering, geotechnical specialisation and manufacturing in Industrialised Building System (“IBS”)
precast concrete products.
As of November 28, 2016, ML Global Berhad was acquired by MITC Engineering Sdn. Bhd. in a
reverse merger transaction. ML Global Berhad, an investment holding company, manufactures and
trades roof tiles in Malaysia. It is also involved in the supply and laying of roof tiles; installation of
roofing on a consignment basis; and provision of construction services for commercial and residential
buildings and other works. The company was formerly known as VTI Vintage Berhad and changed its
name to ML Global Berhad in September 2014. The company is based in Petaling Jaya, Malaysia. ML
Global Berhad is a subsidiary of LBS Bina Group Bhd.
The Company had seen changes at the Board, key management and substantial shareholders level since
year 2016, particularly with the entrants of LBS Bina Group Berhad (“LBGB”) as the holding company
of MGB, as well as the new Board lead by Tan Sri Lim Hock San, the Group Managing Director, Datuk
Wira Lim Hock Guan, Executive Director and Datuk Lim Lit Chek, Executive Director and Chief
Executive Officer of the Company. From then onwards, the Group has been actively restrategising its
business plans with the main focus in construction business while continue exploring further growth
opportunities in construction related or other complementary businesses.
In the financial year 2017 (“FY 2017”), the construction segment scope of activities has been widened
with piling activities. Notwithstanding that, the Group has further enhanced its value engineering
concept by entering into joint venture arrangement with SANY Construction Industry Development
(M) Sdn Bhd to manufacture, supply of precast concrete products and installation services for building
projects. In addition, the Group has also ventured into property development business in FY 2017.
Presently, the Group has embarked on a development project known as ‘Zenopy Residences’, a mixed
development project comprising 398 units of service apartments and 74 of shop units in Seri
Kembangan, Selangor.
2. Vision
To be a recognized design and build expert setting new standards in creating living spaces to enrich
life.
I. Passion

We believe that passion in the business causes us self-innovate. It spurs us to explore and to embrace
new ideas of working, new software and new ways of communication to create greater timeliness and
efficiency for our clients. Greater efficiency means a better bottom line.
II. Creativity

We understand that every generation has different needs. Innovation can come through creative
thinking that provides apt solutions that cater to the specific needs so that greater value is felt to the
end consumer.
III. Care

We believe in a working culture that puts people first. People innovation. Apart from caring for their
wellbeing, we believe in promoting and nurturing talent. To provide the environment and guidance to
create a culture of seeking progress.
3. Liquidity ratio
3.1 Current ratio
𝐜𝐮𝐫𝐫𝐞𝐧𝐭 𝐚𝐬𝐬𝐞𝐭
Current ratio = 𝐜𝐮𝐫𝐫𝐞𝐧𝐭 𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲

Current Ratio
2017 2016 2015 2014 2013

3.2 Quick ratio

𝐚𝐬𝐬𝐞𝐭𝐬
Quick ratio = 𝐜𝐮𝐫𝐫𝐞𝐧𝐭 𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲

Quick Ratio
2017 2016 2015 2014 2013
4. Efficiency ratio
4.1 Inventory turnover
𝐂𝐨𝐬𝐭 𝐨𝐟 𝐆𝐨𝐨𝐝 𝐒𝐨𝐥𝐝
Inventory turnover ratio = 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲

Inventory Turnover
2017 2016 2015 2014 2013

4.2 Accounts receivable turnover ratio

𝐀𝐧𝐧𝐮𝐚𝐥 𝐍𝐞𝐭 𝐂𝐫𝐞𝐝𝐢𝐭 𝐒𝐚𝐥𝐞𝐬
Receivable turnover = 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞

Receivable Turnover
2017 2016 2015 2014 2013

𝐃𝐚𝐲 𝐢𝐧 𝐭𝐡𝐞 𝐲𝐞𝐚𝐫

Average collection period = 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞 𝐭𝐮𝐫𝐧𝐨𝐯𝐞𝐫

Average Collection Period

2017 2016 2015 2014 2013

4.3 Accounts payable turnover ratio

𝐀𝐧𝐧𝐮𝐚𝐥 𝐂𝐫𝐞𝐝𝐢𝐭 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞
Payable turnover = 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐏𝐚𝐲𝐚𝐛𝐥𝐞

Payable Turnover
2017 2016 2015 2014 2013
 𝐃𝐚𝐲 𝐢𝐧 𝐭𝐡𝐞 𝐲𝐞𝐚𝐫
Payable Turnover in days = 𝐏𝐚𝐲𝐚𝐛𝐥𝐞 𝐭𝐮𝐫𝐧𝐨𝐯𝐞𝐫

Payable Turnover in days

2017 2016 2015 2014 2013

4.4 Total asset turnover

𝐍𝐞𝐭 𝐬𝐚𝐥𝐞𝐬
Total asset turnover = 𝐓𝐨𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭

Total Asset Turnover

2017 2016 2015 2014 2013
5. Leverage ratio
5.1 Debt to equity
𝐋𝐨𝐧𝐠 𝐭𝐞𝐫𝐦 𝐥𝐨𝐚𝐧𝐬
Debt to equity = 𝐓𝐨𝐭𝐚𝐥 𝐥𝐨𝐧𝐠 𝐭𝐞𝐫𝐦 𝐝𝐞𝐛𝐭

Debt to Equity
2017 2016 2015 2014 2013

5.2 Debt to total asset

𝐓𝐨𝐭𝐚𝐥 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬
Debt to total asset = 𝐓𝐨𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭
× 𝟏𝟎𝟎

Debt to Equity
2017 2016 2015 2014 2013

× 100 × 100 × 100 × 100 × 100

5.3 Total capitalization ratio

𝐋𝐨𝐧𝐠 𝐭𝐞𝐫𝐦 𝐝𝐞𝐛𝐭
Total capitalization ratio =
𝐓𝐨𝐭𝐚𝐥 𝐜𝐚𝐩𝐢𝐭𝐚𝐥𝐢𝐳𝐚𝐭𝐢𝐨𝐧

Total Capitalization Ratio

2017 2016 2015 2014 2013

5.4 Interest coverage

𝐄𝐚𝐫𝐧𝐢𝐧𝐠 𝐛𝐞𝐟𝐨𝐫𝐞 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐚𝐧𝐝 𝐭𝐚𝐱
Interest coverage = 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭

Interest Coverage
2017 2016 2015 2014 2013
6. Profitability ratio
6.1 Gross profit margin
𝐆𝐫𝐨𝐬𝐬 𝐩𝐫𝐨𝐟𝐢𝐭
Gross profit ratio = 𝐍𝐞𝐭 𝐬𝐚𝐥𝐞𝐬
× 𝟏𝟎𝟎

Gross Profit Ratio

2017 2016 2015 2014 2013

× 100 × 100 × 100 × 100 × 100

6.2 Net profit margin

𝐍𝐞𝐭 𝐩𝐫𝐨𝐟𝐢𝐭 𝐚𝐟𝐭𝐞𝐫 𝐭𝐚𝐱𝐞𝐬
Net profit ratio = 𝐍𝐞𝐭 𝐬𝐚𝐥𝐞𝐬
× 𝟏𝟎𝟎

Net Profit Ratio

2017 2016 2015 2014 2013

× 100 × 100 × 100 × 100 × 100

6.3 Return on investment (ROI)

𝐍𝐞𝐭 𝐩𝐫𝐨𝐟𝐢𝐭 𝐚𝐟𝐭𝐞𝐫 𝐭𝐚𝐱𝐞𝐬
ROI =
𝐓𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭𝐬

Return On Investment
2017 2016 2015 2014 2013

6.4 Return on equity (ROE)

𝐍𝐞𝐭 𝐩𝐫𝐨𝐟𝐢𝐭 𝐚𝐟𝐭𝐞𝐫 𝐭𝐚𝐱𝐞𝐬
ROE = 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐄𝐪𝐮𝐢𝐭𝐲

Return On Equity
2017 2016 2015 2014 2013