LBS achieved RM1.604 billion in sales, with a total of 3,886 units sold, reaching its financial year 2022 sales target before the end of the final quarter. Sterling sales performance in 2022 also seen an 85.8% year-on-year growth as at 15 October 2021 of RM863 million. Klang Valley, in particular, showcased a commendable take-up rate, contributing 89% of the total sales figure.
In spite of the recent manpower shortage, material price hike, and the nation’s economic recovery in the endemic phase, which has proven to be a challenge for the housing landscape in Malaysia, more so for the affordable homes category, LBS was able to pull through steadily and even outperform previous year sales target by almost double. Part of the success is attributed to MGB’s in-house Industrialised Building System (IBS) pre-cast technology, which speeds up construction process, reduces operational cost, without compromising build quality.
The Group reported that development projects within the Klang Valley accounted for more than 84% of the 6MFYE22 revenue. The Group’s cash and cash equivalents, as at end-June 2022, was RM265.7 million, an increase of 62% compared to 6MFY21. In the second quarter ended 30th June 2022 (3 months), LBS saw its revenue grow 54% year-on-year to RM410.4million while earnings per share rose to 2.25 sen from 1.04 sen a year prior. As at 30th June 2022 (6 months), the Group’s revenue grows 23% year-on-year to RM819.4mil while earnings per share rose to 3.70 sen from 2.37 sen a year prior.
For the year ahead, LBS sets to move on to a greater paradigm shift, holistically. This includes venturing into new partnerships and businesses. LBS is constantly on the outlook for new partnerships and collaborations. Among LBS’ recent partnership is with the state of Selangor in the launch of Rumah Selangorku Idaman MBI as well as the collaboration with Watsons’ Win-a-Home campaign, on top of our very own LBS Fabulous Extra 2022-23 campaign that rewards LBS homeowners with amazing prizes. These initiatives enable us to grow our marketing potentials and provide outreach to a different target audience and expand our database.
The Group also sets to strengthen existing industries by improvising on the current SOPs, departmental centralization and sharing, automated data gathering on IBS system to maximise output and quality. The Group’s recent win as Malaysia’s Best Managed Companies 2022 by Deloitte is a testament that organizational management is the core foundation to our success. The staple of LBS remains to be building homes for the people and the Group forecasts to launch 17 projects in the Klang Valley, Johor, Pahang, and Perak for the following year.
Operational efficiency is yet another focus of LBS, which enables us to better track our performance indicators, in the form of automation accuracy and customer satisfaction. As for non-financial values, ESG serves as an enabler to higher financial optimisation, reduced volatility and increased employee productivity. Thus, for 2023, LBS envisions to develop a business model that will propel towards building good governance, strong environmental and social performance.
Commenting on the achievement, the Group’s Executive Chairman, Tan Sri Lim Hock San states, “As with the end of stamp duty exemption at the end of 2021, the market expected a decline in sales but I am gratified to have continued to receive a robust take-up rate for our projects. The Government’s recent measure to increase stamp duty exemption is to be applauded as our properties are within the RM500,000 range, providing a saving from RM21,000 for first time home buyers.”
“Digitalization is the norm in today’s home buying journey. Finding the right home can be taxing. The goal is to streamline and make the process as seamless as possible by including robotics and automation starting from the construction process all the way to key collection. We bring live construction progress with drone footage, provide an intuitive user interface where one can browse their future home via virtual showhouses, solve their inquiries via helpdesk and place their booking via online, the entire process at your fingertip, made possible. That said, I am certain we are able to hold on to this momentum till year-end” added Tan Sri Lim Hock San.