LBS Bina jumps 8.5% as continuing operations return to black in 4Q, dividend policy revised

KUALA LUMPUR (Feb 26): LBS Bina Group Bhd (KL:LBS) said it recorded normalised profit after tax from continuing operations of RM44.73 million in the fourth quarter ended Dec 31, 2025 (4QFY2025) against a loss after tax of RM3.37 million in 4QFY2024, lifted by stronger contribution from its property development segment.

In a bourse filing on Wednesday (Feb 25), the property developer said quarterly revenue jumped 61% to RM462.31 million from RM287.14 million a year earlier, mainly driven by higher contribution from the property development segment.

LBS has formally revised its dividend policy, which increased its minimum dividend payout ratio from 30% to 40% of its normalised profit after tax and minority interests (Patami). 

Reflecting this commitment to enhance shareholders’ value, the group has declared a first interim single-tier dividend of 1.3 sen per share, payable on May 20, 2026. The board has also proposed a final single-tier dividend of two sen per ordinary share, bringing the total proposed payout to 3.3 sen per share.

Shares of LBS Bina rose as much as 8.5% or 3.5 sen on Thursday's morning session following the results announcement. At the time of writing, the stock was still up three sen or 7.32% at 44 sen, giving it a market capitalisation of RM687.41 million. The shares are up over 15% this year.

For the full-year of FY2025, LBS Bina's net profit from continuing operations rose 27% to RM137.86 million from RM108.47 million in FY2024. Full-year revenue increased 8.29% to RM1.55 billion from RM1.43 billion previously.

Including discontinued operations recorded in the previous year, total net profit for FY2025 declined 48% to RM137.86 million, from RM265.94 million in FY2024.

Commenting on the results, group executive chairman Tan Sri Dr Lim Hock San said FY2025 marks the first year of its three-year corporate strategy of 8 x 8 Strategy.

LBS Bina's total 2025 sales of RM1.4 billion surpassed the previous year’s RM1.3 billion, Lim said in a statement. “Klang Valley developments remain the anchor of our revenue and earnings, supported by both residential and industrial projects,” he said.

Lim said the group will undertake the development of the townships at Kwasa Damansara, with launches slated to begin in 2027.

“Beyond Klang Valley, we are also excited with our joint venture with Oriental Holdings Bhd (KL:ORIENT) to jointly develop an integrated mixed use project in Klebang, Melaka,” Lim added.

The group also cancelled 10 million treasury shares, representing 0.6% of the issued ordinary shares, as a strategic effort to optimise its capital structure and enhance shareholders’ value.

As at Dec 31, 2025, LBS recorded cash and bank balances of RM653.2 million, with net assets per share rising to RM1.10 from RM1.05. It also recorded unbilled sales of RM1.3 billion.

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