LBS Bina 2Q profit surges on strong showing by property development segment

• LBS Bina is on track to meet its 2022 sales target of RM1.6 billion.
• Projects in Klang Valley remained the largest revenue contributor during the second quarter.

KUALA LUMPUR (Aug 22): LBS Bina Group Bhd’s second quarter net profit jumped 115.77% to RM35.13 million, from RM16.28 million a year earlier, on the back of its property development segment’s strong showing.

Earnings per share for the quarter ended June 30, 2022 rose to 2.25 sen from 1.04 sen, the construction and property development outfit’s Bursa Malaysia filing showed.

Revenue for the quarter stood at RM410.37 million, up 54.32% as compared to RM265.92 million a year earlier.

The property development segment posted solid results with profit before tax (PBT) surging 138.71% to RM68.24 million from RM28.59 million a year prior, underpinned by continued strong demand for ongoing development projects at Bukit Jalil as well as LBS Alam Perdana, KITA @ Cybersouth and Alam Awana Industrial Park.

Development projects within the Klang Valley remained as the largest revenue contributor during the quarter, accounting for RM391.99 million or 84% of the total revenue, said LBS Bina. This was 57.9% higher than the RM248.25 million reported a year earlier.

Meanwhile, the group’s construction and trading segment’s PBT dropped 60.43% to RM2.88 million from RM7.29 million due to rising building material costs, labour shortages and higher administrative and operating expenses.  

The construction and trading segment’s revenue for the quarter stood at RM130.16 million, up a marginal 4.3% from RM124.8 million a year ago.

For the cumulative six-month period, LBS Bina logged a net profit of RM65.29 million, up 57.58% from RM41.43 million in the previous January-June period, while revenue rose 22.58% to RM819.39 million from RM668.47 million.

Looking forward, LBS Bina said the group is on track to meet its current year's sales target of RM1.6 billion in view of its recorded property sales of RM1.31 billion with RM313 million in the pipeline as at Aug 21.

The attainment of the sales target will be supported by the return of the group's LBS Fabulous Extra lucky draw campaign as well as 14 new project launches worth RM1.77 billion in the Klang Valley, Johor, Pahang and Perak, said the group.

“The group’s financial performance for the current year will be undergirded by unbilled sales which remain strong at RM2.4 billion and give the group revenue visibility.

“In light of the global geopolitical headwinds, we continue to be vigilant, to enhance and streamline our systems and processes while actively pursue marketing initiatives that aim to bring greater value to our homebuyers,” it added.

Shares in LBS Bina finished down half a sen or 1.18% at 42 sen, giving the group a market capitalisation of RM651.42 million.