LBS BINA GROUP BHD is confident of performing better this year, having achieved total sales of RM353mil in the first eight months of its financial year ending Dec 31 compared with the same amount for the whole of 2002.
“Our target is to achieve at least RM450mil by year-end and our total locked-in sales of RM700mil with an unbilled order book of RM529mil will underpin earnings in the second half of this year and beyond,” its managing director Datuk Lim Hock San said.
Lim said LBS’s high exposure in the low-medium to medium-cost housing range had contributed substantially to its performance, especially with the government’s May economic package which generated stronger buying interest for houses.
Some 85% of the group’s projects are properties priced below RM180,000.
“The main contributor to our future earnings will be our flagship project in Bandar Saujana Putra, near USJ/Putra Heights. Since its soft launch in March, units worth RM172mil have been sold, a take-up rate of about 75%,” he told StarBiz yesterday.
Speaking at a briefing on the group’s first-half financial performance, LBS director-cum-senior general manager Alan Chia said for the six months ended June 30, LBS had seen a10.7% increase in total revenue to RM161.9mil from RM146.2mil in the corresponding period last year. Net profit, after taxation and minority interests, was 14.7% higher at RM14.2mil.
Property development contributed 79% to group revenue, primarily from its ongoing developments in the Klang Valley, Ipoh, Cameron Highlands and Batu Pahat.
“These projects have received good sales response, especially during the current conducive market environment of low financing rates and special loan packages offered by our panel of bankers, and are expected to provide a constant flow of revenue and profit in the foreseeable future,” Chia said.
In the second half of this year, he said, an additional 1,705 units will be launched in Bandar Saujana Putra for a gross development value of RM230.37mil, 296 units in Casa Tropicana for RM88mil and 1,307 units in Bandar Putera Indah for RM98.95mil.
A first and final dividend of 5% less tax for financial year ended Dec 31, 2002, has been declared for payment on Sept 18.
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