LBS Bina posts lower 4Q earnings, but full-year results see improvement

• Going forward, LBS Bina executive chairman Tan Sri Lim Hock San said LBS Bina will continue to increase operational efficiency to improve its profit margins and ensure long-term business sustainability.

KUALA LUMPUR (Feb 21): LBS Bina Group Bhd’s net profit fell 28.86% to RM25.65 million for the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM36.05 million a year ago, dragged down mainly by lower contribution from its property development, construction and trading segments.

But lower administrative and operating expenses, finance costs and tax expenses helped cushion the earnings contraction, the property developer said in a bourse filing.

The administrative and operating expenses dropped 45.54% to RM41.65 million from RM76.48 million in 4QFY2021, tax expenses decreased 32.14% to RM14.87 million from RM21.92 million, and finance costs fell 7.5% to RM17.55 million from RM18.98 million.

LBS said quarterly revenue dropped 15.92% to RM372.76 million, from RM443.33 million a year earlier.

For the full financial year, the group performed better with a 32.07% increase in net profit to RM126.28 million from RM95.62 million in FY2021. Revenue rose to a record RM1.72 billion from RM1.37 billion.

Commenting on the results, LBS Bina executive chairman Tan Sri Lim Hock San said the group has yet again surpassed expectations.

“Following on from 2021, we have again clocked in record revenue and put us on good stead in 2023. It is encouraging to witness the recovery of the property market, and we expect market confidence to improve further in 2023.

“Exciting times are ahead for the remainder of the year as we intend to launch 12 new projects with an estimated GDV (gross development value) of RM2.09 billion worth of properties in the coming quarters,” said Lim in a statement.

“Being able to surpass our initial 2022 sales target of RM1.6 billion by 25% to RM2 billion is testament to our homebuyers’ trust and confidence in our products and services,” he added.

Going forward, Lim said LBS Bina will continue to increase operational efficiency to improve its profit margins and ensure long-term business sustainability.

In addition, LBS will emphasise environmental, social and governance principles for long-term value creation to further propel its growth in the property market, he added. 

Currently, LBS Bina has unbilled sales of RM2.4 billion, which will contribute a solid buffer to withstand earnings visibility over the next two to three years.

The group has 18 ongoing development projects with an estimated GDV of RM5.7 billion and a landbank of 2,970 acres.

LBS Bina’s shares price closed 0.5 sen or 1.2% lower at 41 sen on Tuesday (Nov 21), giving the group a market capitalisation of RM643 million.