LBS Bina 4Q net profit drops 13% on higher costs, lower interest income

KUALA LUMPUR (March 1): LBS Bina Group Bhd’s net profit for the fourth quarter dropped 13% year-on-year, mainly on lower interest income and higher finance costs, while other income fell as the previous corresponding quarter had registered a one-off government grant. 

Net profit for the three months ended Dec 31, 2017 (4QFY17) was down at RM24.32 million from RM27.83 million in 4QFY16, which trimmed earnings per share to 3.64 sen from 4.72 sen. Revenue, however, grew 26% y-o-y to RM406.72 million from RM322.27 million.

For its full year, net profit rose 21% y-o-y to RM103.4 million from RM85.3 million, as revenue grew 37% y-o-y to RM1.36 billion from RM993.62 million, its Bursa Malaysia filing showed.

The group said improved revenue for the current quarter (4QFY17) and financial year ended Dec 31, 2017 (FY17) were largely from ongoing projects, with impressive take up rates at Bandar Saujana Putra, D’ Island Residence, Bandar Putera Indah, Sinaran Mahkota, Midhills, Desiran Bayu, LBS Alam Perdana and Zenopy Residences.

Moving forward, the group remains confident as its property development segment continues to drive the business forward. 

As at Feb 27, 2018, the group achieved property sales of approximately RM293 million, the filing said. Unbilled sales stood at RM1.42 billion as at Dec 31, 2017.

The group also has 19 ongoing projects and a total land bank of about 4,123 acres as at reporting date.

LBS Bina’s shares closed down three sen or 2.86% yesterday to RM1.02, with 1.04 million shares traded, for a market capitalisation of RM1.58 billion. — theedgemarkets.com

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