KUALA LUMPUR (May 19): LBS Bina Group Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) rose 20% to RM30.16 million from RM25.15 million a year ago, on the back of a pick up in sales and construction activities following the easing of Covid-19 lockdown restrictions.

Earnings per share rose to 1.45 sen from 1.33 sen previously, according to the property developer’s bourse filing on Wednesday (May 18).

Revenue rose a marginal 1.61% to RM409.02 million, from RM402.55 million in 1QFY21.

“The group recorded a strong 1Q performance as sales and construction activities have picked up following the easing of lockdown restrictions,” said the company.

Its property development segment's profit before tax (PBT) slipped 4.79% to RM51.99 million in the quarter under review from RM54.61 million a year earlier, while revenue rose 0.8% to RM393.48 million from RM390.36 million.

The group mainly attributed the decrease in PBT to a decrease in interest income, as well as an increase in operating expenses. It noted that the segment’s revenue contribution was carried by development projects in the Klang Valley, which accounted for more than 80% of its revenue for the quarter.

Its construction and trading segment posted a PBT of RM10.96 million, a 15.88% decrease from RM13.03 million a year prior, despite the segment’s revenue climbed 8.46% to RM174.01 million from RM160.44 million.  

Despite the increase in the segment’s revenue — primarily carried by in-house projects — the segment’s PBT was dragged by rising cost of building materials, the group said.

It pointed out that the industry is also currently facing supply chain disruptions and labour shortages.

“While this will be a challenge for the short term, group’s investment in IBS Precast system can help mitigate some of these challenges as we continue to focus on the affordable housing segment, while monitoring both global and local developments."

LBS Bina shares finished unchanged at 46.5 sen on Wednesday, which translates to a market capitalisation of RM729.7 million.

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