Mercury Research said LBS Bina’s management reaffirmed its sales target of RM1.5bil for this year, after achieving RM1.3bil in sales year-to-date.
PETALING JAYA: Property developer LBS Bina Group Bhd
is expected to stay on course with its plans for growth, including its sales targets for this year (FY25) and continued expansion of township projects.
Mercury Research, which attended a briefing by the company following last week’s release of its results for the third quarter of this year (3Q25), said LBS Bina’s management reaffirmed its sales target of RM1.5bil for this year, after achieving RM1.3bil in sales year-to-date.
The research house said plans are still in place to monetise a 1.4ha leasehold parcel in Johor following the disposal of two plots of land in the state totalling 0.8ha for RM110mil last month.
It added that management views the divestment of the Johor land positively as it enables the company to reallocate resources to the core Klang Valley market, especially after securing land in Kwasa Damansara carrying an estimated gross development value (GDV) of RM8.3bil.
The proposed PJ West development in Kwasa Damansara comprises 2,922 residential units across low and mid-rise condominiums and landed homes, to be rolled out in phases over 14 years,” the research house said.
The company has a total of six projects launched as of Nov 27 with GDV of RM958.2mil, below the RM2.3bil yearly target in its corporate strategy as adjustments were made based on market sentiment to align with demand and market conditions.
As of October, the company had total land holdings of 1,529ha equivalent to RM33bil in GDV, while unbilled sales stood at RM1.34bil (1.05 times FY25 revenue), offering healthy earnings visibility.
“Currently, the remaining projects will be deferred to FY26 due to uncertainties over the sales and service tax (SST) for serviced apartments with commercial titles that were later confirmed to be SST-exempt,” the research house said, adding that the SST impact should be manageable as it only reduces net margins by 3%.
“Mitigation wise, LBS is now reviewing the selling price per unit, cost structure and design optimisation.
“Pending finalisation, the FY26 indicative launch pipeline is expected to be around RM2.6bil, with final numbers to be shared after December,” the research house said.
LBS said during the briefing that it intends to redeem its current RM93mil perpetual sukuk after maturity next March and has no plans to issue another.
“We remain positive on LBS’ corporate strategy, which focuses on efficient land utilisation, continued township expansion and a diversified product mix spanning residential, commercial/retail, industrial and hospitality segments,” the research house said.
It noted that 4Q25 performance “is expected to be supported by upcoming launches including the landed D’Island Residence in Puchong, Kita@Cybersouth high-rise in Selangor, Telok Gong Industrial Park in Klang, and Bandar Putera Indah landed homes in Batu Pahat. The projects have a combined GDV of RM1.02bil.
Mercury Research reiterated its “buy” call on the stock with an unchanged target price of 64 sen.
