LBS Bina 3Q net profit rises 11% on higher property development contribution

KUALA LUMPUR (Dec 1): LBS Bina Group Bhd reported an 11.4% increase in its net profit to RM24.14 million for the third quarter ended Sept 30, 2018, from RM21.66 million in the previous year’s corresponding quarter, contributed mainly by its property development division.

Revenue for the quarter rose 20.8% to RM410.26 million from RM339.59 million in the previous year.

For the cumulative nine-month period (9MFY18), net profit saw a marginal decline to RM68 million from RM68.46 million in 9MFY17, while revenue increased 2.5% to RM955.13 million from RM931.74 million.

LBS Bina said its property development segment saw lower revenue and pre-tax profit for 9MFY18, as it completed and handed over certain projects in the previous financial year, while ongoing projects are still in the early stages of construction.

“Projects which contributed to the revenue and pre-tax profit were Bandar Saujana Putra, Desiran Bayu, LBS Alam Perdana, D’Island Residence, Zenopy Residences, Cameron Golden Hills, Midhills, Bandar Putera Indah, Residensi Bintang Bukit Jalil, Cameron Centrum and Sinaran Mahkota,” it said in a filing.

Its construction and trading segment posted higher revenue and pre-tax profit, contributed by Bandar Saujana Putra, Desiran Bayu, LBS Alam Perdana and D’Island Residence.

Meanwhile, its motor racing circuit business saw a marginal increase in revenue and improvement in pre-tax loss due to lower operating expenses.

Going forward, property development, which accounted for 86% of the group’s total revenue for the current financial period, will remain the key driver of LBS Bina’s business operations.

The group said it has total land bank of more than 4,000 acres spread over Selangor and Kuala Lumpur (41%), Johor (41%), Perak (12%), Pahang (5%) and Sabah (1%).

“While the prospects for the property industry remains challenging, the group’s prospects moving forward remain positive with total property sales of RM1.51 billion as at Nov 28 and total unbilled sales of RM1.68 billion as at Oct 31, anchored by 19 ongoing projects and a total land bank of more than 4,000 acres,” it said.

LBS Bina shares rose 3.5 sen or 5.26% to 70 sen, giving it a market capitalisation of RM1.09 billion.