LBS Bina Group Bhd, which has 17 ongoing projects with an estimated gross development value (GDV) of RM4.4 billion is optimistic about its sales momentum and growth prospects amidst the Recovery Movement Control Order (RMCO) backdrop.
Group managing director Tan Sri Lim Hock San said despite the various market challenges, LBS achieved property sales of RM965 million as at August this year.
Lim said the biggest contributors were the group’s Kita@Cybersouth and LBS Alam Perdana townships, coupled with a total unbilled sales of about RM2.2 billion.
He said the property sales of RM965 million are attributed to the group’s proven strategy and right products that cater to market demand.
As such, LBS is confident to achieve its revised target of RM1 billion this year.
In January 2020, LBS had announced a sales target of RM1.6 billion for 2020 but due to the MCO, the group had in April 2020 revised the sales target to RM1 billion.
Lim said the MCO had impacted the property and construction sectors whereby construction sites and sales galleries were closed from March to curb the outbreak of Covid-19.
“Given the encouraging momentum of the group’s township projects and effective marketing campaign, we are confident that we will exceed our revised RM1 billion sales target for 2020 and remain hopeful towards achieving our initial sales target of RM1.6 billion. With the positive outlook of the property sector, we will continue to launch more projects in the coming months to continue increasing our sales,” he said.
“The pandemic has impacted and changed the landscape of businesses all over the world. Despite all these, LBS is on the right track to sailing through these challenging times. We are fortunate that we had started our digital and technology adoptions even before the pandemic hit us. Moreover, the market sentiment has gradually improved and as a result, our sales also increased tremendously,” he said.
For the six months ended June 30, 2020, LBS registered revenue and pre-tax profit of about RM466 million and RM36 million respectively.
The earnings of the group were mainly contributed by LBS’s key townships and projects such as LBS Alam Perdana, KITA @ Cybersouth, Residensi Bintang Bukit Jalil, Zenopy Residence, and LBS SkyLake Residence.
Lim said the group’s unbilled sales of about RM2.2 billion will contribute to earnings for the next two to three years.
Meanwhile, Lim said that LBS remains resilient as it owns a land bank of around 1,435 hectares in the Klang Valley, Pahang, Perak, Johor, and Sabah, with an estimated GDV RM31 billion.
He said the group will continue to develop projects based on its three main pillars of affordability, connectivity, and community.
“With the right government initiatives in place, the property market seems to remain resilient. The reintroduction of Home Ownership Campaign (HOC) has helped more Malaysians to own a home,” Lim said.
During HOC 2020, stamp duty is exempted and 70 per cent financing limit for third and subsequent housing loans worth more than RM600,000 is uplifted.
Lim said with the reduction of Overnight Policy Rate (OPR), this will further ease the burden of homebuyers.