‘Exciting times are ahead for the remainder of the year as we intend to launch RM424mil worth of properties in the fourth quarter. This should provide us with leverage to close 2022 on a positive note,’ says executive chairman Lim.
KUALA LUMPUR: LBS Bina Group Bhd
reported a strong set of results for the third quarter of its financial year ending Dec 31, 2022 (3Q22), driven by an impressive revenue of RM528.9mil, which grew 108% year-on-year from RM254mil in 3Q21.
Profit after tax increased by 96% from RM20mil to RM39.2mil while non-controlling interests grew by 95% from RM18.1mil to RM35.4mil year-on-year.
On a segmental basis, property development remained the group’s main earnings contributor, with revenue doubled from RM243.2mil to RM512.2mil in 3Q22.
The increase was largely attributable to the positive take-up rates of LBS’ key projects in Bukit Jalil, LBS Alam Perdana, KITA @ Cybersouth and Alam Awana Industrial Park.
The group reported that development projects within the Klang Valley accounted for more than 85% of its revenue for the current financial period.
For the nine months ending Sept 30, 2022, revenue surged by 46% to RM1.3bil while profit after tax and minority interest was up by 69% to RM100.6mil, as compared to the corresponding period in 2021.
LBS announced that as at Nov 21, 2022, it has surpassed its property sales target of RM1.6bil by 14%, as it stood at RM1.83bil.
As at Oct 31, 2022, LBS has a land bank for future development of 1,078 hectares and healthy unbilled sales of RM2.54bil.
In comments accompanying its 3Q22 results announcement to Bursa Malaysia, LBS said the group’s achievement has been remarkable despite the challenging operating conditions beset by inflationary pressure, labour shortages, high material costs and rising interest rates.
LBS said the ongoing full stamp-duty exemption on first residential homes below RM500,000 would continue to boost ownership among middle-income earners, as 60% of its properties are priced within the RM500,000 range.
“While the economic backdrop remains uncertain, the group will continue to advance digitalisation within the organisation, step up departmental centralisation and to continue with automated data gathering on industrialised building system (IBS) for greater output and quality.
“The group continues to pursue environmental, social and governance (ESG) values and is working towards developing a business model that builds good governance with strong environmental and social performance,” it added.
LBS executive chairman Tan Sri Lim Hock San commented: “LBS has performed remarkably well this quarter and I am indeed pleased by our results.
“It is encouraging to note that demand for affordable properties continues to remain strong.
“The strategic locations of our developments and affordable pricing have paid off handsomely as we have managed to maintain our performance throughout 2022.
“Exciting times are ahead for the remainder of the year as we intend to launch RM424mil worth of properties in the fourth quarter.
“This should provide us with leverage to close 2022 on a positive note.”
Lim added: “According to Bank Negara, Malaysia may face a challenging economic climate in 2023, as the worsening supply chain, geopolitical uncertainty and market volatility could upset growth.
“We are cautious about these negative factors and believe that with our focused and strategic hands-on approach, we should be able to minimise disruptions to our business in the quarters ahead.”
LBS, an internationally recognised group with a vision for building and inspiring delightful spaces, is a renowned township developer that has amassed numerous awards through its various developments.
Beyond property development, LBS is also venturing into retail management, hospitality and tourism.
For more information on LBS, go to lbs.com.my
