LBS Group reports stronger sequential performance in 3Q

LBS Residensi Bintang Bukit Jalil

KUALA LUMUR: LBS Bina Group Bhd posted a much improved set of financial results in the third quarter ended Sept 30,2020 with pre-tax profit (PBT) of RM43.48mil on revenue of RM335.65mil as construction activities picked up after the Movement Control Order (MCO) was uplifted.

The property developer reported on Monday the 3Q pre-tax profit was up by 262% from the RM11.99mil in the second quarter and its revenue doubled from the RM116.89mil a year ago.

“The growth in revenue and profit before tax were mainly attributable to the recovery of business operations and ramping up in the construction activities after the uplift of MCO and conditional MCO, ” it said in a statement to Bursa Malaysia.

However, when compared with a year ago, LBS Bina reported a slightly lower net profit of RM20.15mil versus RM21.06mil a year ago. Its revenue fell to RM335.65mil from RM388.16mil.

For the nine months, its net profit was RM32.24mil compared with RM52.76mil in the previous corresponding period. Its revenue declined to RM801.81mil from RM1.03bil.

During the nine months, the property development segment recorded lower revenue and lower PBT mainly due to the suspension of construction activities and limited business operations during the MCO and CMCO from March to May.

Revenue and PBT were mainly contributed by the development projects at Kita@Cybersouth (pic below), LBS Alam Perdana, Skylake Residence, Residensi Bintang Bukit Jalil and Cameron Golden Hills.

Projects within the Klang Valley remain as the largest revenue contributor, accounting for more than 80%of the group’s revenue for the current financial period.

In the nine months, its management, investment and others segment recorded revenue of RM139mil and loss before tax (LBT) of RM10mil as compared to revenue of RM99mil and LBT of RM24mil a year ago.

LBS Bina said its motor racing circuit segment recorded revenue of RM7mil and LBT of RM9mil versus revenue of RM18mi and LBT of RM6mil a year ago.

“Due to the outbreak of Covid-19, scheduled racing events during the lockdown period have been postponed to later date which has resulted in negative impact on the revenue and LBT, ” it said.

On the outlook, LBS Bina said the government’s initiatives to rejuvenate the real estate industry through the Home Ownership Campaign 2020 was timely.

It was optimistic this will encourage many Malaysians who are looking for homes.

“With the group’s ability to understand and meet current market needs, sales momentum and growth prospects continue to be promising.

“Property sales stands at RM1.1bil, with Kita@Cybersouth and LBS Alam Perdana townships as the largest contributors, along with a total unbilled sales standing at over RM2bil.

Currently, the group has 20 on-going development projects with a total gross development value (GDV) of RM5.2bil.

As at Oct 31,2020, the Group owns future landbank of 3,492 acres.

“The group remains resilient as the future land bank that will generate a GDV of RM31bil, ” it said.

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