LBS Bina Group Bhd: Resilient Performance Despite Deferred Launches
LBS Bina Group Bhd (KL:LBS), a leading property developer in Malaysia, has reported RM1.21 billion in property sales as of Nov 28, 2024. While its internal sales target of RM1.8 billion for the year is unlikely to be met due to deferred project launches, the group remains optimistic about its future performance, bolstered by a strong pipeline and a significant land bank.
A Solid Land Bank and Unbilled Sales
With 3,746 acres of land bank and RM1.67 billion in unbilled sales, LBS Bina has laid a solid foundation for future growth. These reserves ensure a steady stream of development projects despite delays caused by prolonged approval processes.
Deferred Launches and Current Sales Figures
- Total property sales (as of Nov 28): RM1.21 billion
- Bookings in progress: RM183.5 million
- Internal sales target for FY2024: RM1.8 billion
Given the timing, achieving the RM1.8 billion target by the year’s end is no longer feasible, but the group’s confidence in its long-term strategy remains unshaken.
Record-High Net Profit in Q3 FY2024
LBS Bina’s financial performance for the third quarter ending Sept 30, 2024, highlights the group’s ability to deliver value despite challenges.
- Net profit: RM167.06 million (a four-fold increase year-on-year)
- Revenue: RM377.39 million (a 19.16% decline year-on-year)
The profit surge was driven by a one-off gain of RM137 million from the disposal of Lamdeal Investments Ltd (LIL), which holds a 60% stake in Zhuhai International Circuit Ltd in China.
Excluding this one-off gain, the group’s adjusted pre-tax profit for the quarter was RM77.3 million, reflecting resilient underlying operations.
Special Dividend Announcement
To reward shareholders, LBS Bina declared a special dividend of 2.6 sen per share, payable on Dec 30, 2024.
This announcement underscores the group’s commitment to sharing its financial achievements with stakeholders, particularly following its strongest quarterly profit since Q3 FY2013.
Cumulative Performance for 9MFY2024
For the nine months ended Sept 30, 2024:
- Net profit: RM232.23 million (a 124% increase year-on-year)
- Revenue: RM1.15 billion (a 5.83% decrease year-on-year)
The decline in revenue was attributed to the completion or near completion of certain property and construction projects.
Strategic Disposal of Lamdeal Investments Ltd
In June, LBS Bina announced the sale of LIL for 192.18 million yuan (RM124.74 million). The disposal aligns with the group’s strategy to optimize its portfolio, reduce debt, and enhance operational focus on its core property development business.
Optimistic Outlook Despite Challenges
While the group faced setbacks due to deferred launches, its extensive land bank and unbilled sales position it for sustained growth. LBS Bina’s proactive approach to asset monetization, combined with its strong development pipeline, reflects a forward-looking strategy aimed at creating long-term value.
