LBS Bina posts RM37.7 mil 1Q PBT, rides on Klang Valley projects and stronger construction earnings

PETALING JAYA (May 27): LBS Bina Group Bhd opened its financial year ending Dec 31, 2026 with a steady first quarter, supported by its Klang Valley township projects and a sharper turnaround in construction and trading.

For the first quarter ended March 31 (1Q2026), group revenue came in at RM296.5 million, with profit before tax (PBT) of RM37.7 million, it said in its Bursa filing. Net profit for the period stood at RM20.6 million, of which RM17.0 million was attributable to shareholders, translating into basic earnings per share of 0.90 sen.

Property development remains core earnings driver

Property development remained the largest contributor, accounting for 85% of group revenue in 1Q2026. The segment booked RM253.0 million in revenue and RM36.2 million PBT, and continued to be anchored by Klang Valley developments, which made up more than 60% of total group revenue for the quarter.

LBS said the softer year-on-year comparison mainly reflected the completion or near-completion of certain projects that had contributed more strongly in the same quarter last year, rather than a structural shift in demand. Even so, the segment continued to underpin group earnings and cash flow, supported by a broad base of ongoing launches.

Construction and trading show strong uplift

The construction and trading segment delivered a markedly stronger quarter, with revenue jumping to RM37.6 million and PBT improving to RM3.1 million, versus RM9.0 million and RM80,000 respectively in 1Q2025. The group attributed the higher topline to contributions from a foreign subsidiary, while the sharper PBT was driven by cost optimisation initiatives.

Management and investment activities also improved, posting revenue of RM0.7 million and a narrower loss before tax of RM0.8 million, compared with RM0.4 million revenue and RM1.8 million loss a year earlier. The better showing was helped by higher property management income and a one-off foreign exchange gain from the settlement of an intra-group loan.

The “Others” segment — which covers hotel, retail mall, car park management, treasury management, financial services and rental — recorded RM5.2 million revenue and a reduced loss before tax of RM0.9 million, versus RM5.3 million revenue and RM1.7 million loss previously. LBS said lower hotel income during the Ramadan period was offset by lower loan interest expenses following full settlement of a loan last year.

Balance sheet and funding

As at March 31, LBS’ total assets stood at RM4.50 billion, up from RM4.43 billion as at Dec 31, 2025, reflecting larger land held for development, higher contract assets and working capital for projects. Equity attributable to shareholders was RM1.69 billion, with net assets per share steady at RM1.10.

Total borrowings and hire purchase liabilities amounted to RM1.30 billion, comprising RM959.9 million long-term and RM343.8 million short-term facilities, alongside secured bank overdrafts of RM27.5 million. The group also has RM93.0 million of perpetual Sukuk outstanding. No dividend was declared for the quarter.

Cautious outlook, underpinned by landbank and sales

LBS remains “cautiously optimistic” about navigating 2026, noting that its townships and affordable offerings have historically proven resilient through multiple economic cycles, from the Asian Financial Crisis and Global Financial Crisis to the Covid-19 pandemic. 

As at May 25, the group had recorded RM395 million in sales with a further RM302 million in bookings, led by Centrum Iris in Cameron Highlands, Alam Perdana Industrial Park and KITA Sejati.

The sales momentum is expected to be supported by new launches such as Idaman Cahaya 3 (GDV RM117 million) and upcoming projects across residential and commercial segments. As at April 30, LBS held 3,918 acres of landbank and RM1.1 billion in unbilled sales, providing clear revenue visibility over the medium term.

During the quarter, LBS’ licensed moneylending arm, LBS Capital Sdn Bhd, extended RM7.39 million in loans in the ordinary course of business, with total outstanding loans of the same amount as at March 31. The group said the financial assistance has no significant impact on its net assets and earnings per share for the period.

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