LBS BINA Group Berhad (LBS) announced its first quarter results for the financial year ending Dec 31, 2023 (Q1FYE2023) on May 25 with a 7.6% year-on-year increase in profit after tax reaching RM36.37mil for the same quarter.
This was on the back of a revenue of RM384.86mil.
On a segmental basis, property development remained as the group’s main earnings contributor where its revenue accounted for over 96% of the total revenue at RM370.44mil.
The segment’s revenue was largely attributable to the commendable take-up rates from the Group’s key development projects at KITA @ Cybersouth, Bukit Jalil, and LBS Alam Perdana.
As at May 24, LBS has secured total property sales of RM526mil with bookings of RM589mil.
It also oversees 22 ongoing development projects with an estimated gross development value (GDV) of RM6.5bil.
As at April 30, the group has unbilled sales of approximately RM2.39bil, which is expected to provide clear earnings visibility over the next two to three years.
Commenting on the results, LBS executive chairman Tan Sri Ir Lim Hock San said, “We are pleased to kickstart on a positive note with growth in our net profit.
“It is also encouraging to note that our net profit margin has increased to 9.5% in comparison to 8.3% for last year’s first quarter.
“This is attributed to our strategic plans and disciplined cost control to optimise our margins,” he added.
“We continue to roll out creative marketing campaigns to entice buyers, most recently the ‘Rezeki Ekstra Dikongsi Kembali’.
“This campaign offers homebuyers a chance to win a ‘Duit Raya’ worth more than RM438,800 along with six attractive bonus offerings upon purchasing their dream home with LBS.
“In addition, we have other project launches in the pipeline for 2023, which should boost our property sales for the remainder of the year, and we are optimistic we would be able to meet our sales target.
“And although Bank Negara Malaysia has increased the overnight policy rate up by 25 basis points to 3.0%, we believe that our products, which are within the affordable housing range section and located in strategic areas, would continue to see strong demand.
Lim said LBS is encouraged by positive economic initiatives such as the recent government’s decision to subsidise cement prices for affordable housing priced below RM300,000.
He added that the company will continue to build on the success of 2022, with a commitment to present greater value towards our homebuyers, community and stakeholders.
“We are cautiously optimistic that 2023 will turn out to be a positive year for us,” said Lim.