Bright future for LBS Bina despite the pandemic
LBS Bina Group Bhd is in a healthy position to generate positive cash flow for the next two years and with RM2.07 billion unbilled sales as at May 15, 2021, the future looks promising for the company.
The developer is launching up to 16 property projects worth an estimated RM2.65 billion this year.
The projects include new phases in the company’s KITA @ Cybersouth township in Dengkil, LBS Alam Perdana township at Bandar Puncak Alam, Puchong, Mercu Jalil at Bukit Jalil, and Prestige Residence Apartment at Seri Kembangan.
For 2021, LBS has set a sales target of RM1.2 billion but the company’s executive chairman Tan Sri Lim Hock San is confident it will surpass that.
As at May 30, 2021, LBS has raked in RM461 million sales and pipeline bookings is RM492 million.
LBS currently has 19 ongoing projects with a gross development value of RM5.14 billion.
Lim reportedly said the company is confident of surpassing the RM1.2 billion sales target this year, but it remains cautious due to the ongoing Covid-19 pandemic.
He said in the second half of this year LBS is launching three housing developments including a new phase in KITA @ Cybersouth, Bayu Hills, and Block A of Prestige Residence.
Lim told Bernama recently that with these three major projects for the year, LBS remains cautious but optimistic as its affordable housing will be well-received due to the lower interest rates.
He said the Home Ownership Campaign (HOC) extension by the government till December 31, 2021, is also positive news for industry players and home buyers.
LBS Bina’s net profit for the first quarter ended March 31, 2021 (1QFY21) more than doubled to RM25.15 million from RM9.34 million posted in the same quarter last year.
Revenue surged 34.51 per cent to RM402.55 million, from RM299.27 million a year ago, driven by better income from its property development, construction, and trading segments.
The property development segment reported good take-up rates from its ongoing projects in the Klang Valley, Pahang, and Johor, it told Bursa Malaysia recently.
Revenue for the segment increased 37 per cent year-on-year to RM390.36 million, while its pre-tax profit surged 87 per cent to RM54.61 million.
The projects that contributed positively were KITA@Cybersouth, Skylake Residence, Residensi Bintang Bukit Jalil, and Bandar Putera Indah.
Source: NST