LBS Bina logs fourth straight quarterly net profit fall in 3Q

KUALA LUMPUR (Nov 26): LBS Bina Bhd’s net profit for the third quarter ended Sept 30, 2019 (3QFY19) fell 12.74% to RM21.06 million from RM24.14 million a year ago, due to lower income from its construction and trading, as well as its management and investment segments.

Meanwhile, revenue dropped 5.39% to RM388.16 million from RM410.26 million, whereas earnings per share (EPS) for the quarter declined to 1.35 sen from 1.75 sen last year.

For its property development segment, profit before tax increased 35% to RM53.40 million in 3QFY19, from RM39.43 million posted last year.

Meanwhile, segmental revenue dipped 2% to RM357.71 million, from RM365.30 million.

Its construction and trading segment saw profit before tax decreased by 78% to RM2.75 million, from RM12.56 million a year earlier, on the back of a 21% decrease in segmental revenue to RM139.99 million, from RM176.90 million.

For its management, investment and others segment, the group posted a widened loss before tax of RM10.84 million in 3QFY19, from a loss before tax of RM5.88 million last year, despite revenue more than doubling to RM54.22 million, from RM25.88 million a year prior.

Meanwhile, its motor racing circuit segment posted a profit before tax of RM13,000, from a loss before tax of RM2.49 million in 3QFY18.

Segmental revenue rose 72% to RM7.32 million, from RM4.26 million last year.

For its nine-month period ended Sept 30, 2019 (9MFY19), net profit fell 22.40% to RM52.77 million from RM68 million, despite revenue being 8.27% higher at RM1.03 billion, versus RM955.13 million last year.

On its prospects, the group said property development is a key driver of its business operations and has more than 4,000 acres as part of its total land bank.

“Whilst the prospects for the property industry remains challenging due to global and regional headwinds, the group’s prospects moving forward, remain positive with total property sales of approximately RM1.50 billion and total unbilled sales of RM1.84 billion, which are well supported by 18 ongoing projects and a total land bank of approximately 4,000 acres,” it added.

​LBS Bina shares closed half a sen or 1% lower at 49.5 sen yesterday, bringing a market capitalisation of RM766.06 million. It saw some 299,800 shares traded.

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