LBS Bina Group Berhad for its first quarter results recorded a 7.6%, year on year, increase in profit after tax to RM36.37 million for Q1FYE2023. This was on the back of a revenue of RM384.86 million.
On a segmental basis, property development remained as the Group’s main earnings contributor where its revenue accounted for over 96% of the total revenue at RM370.44 million. The segment’s revenue was largely attributable to the commendable take-up rates from the Group’s key development projects at KITA @ Cybersouth, Bukit Jalil, and LBS Alam Perdana.
As at 24 May 2023, LBS has secured total property sales of RM 526 million with bookings of RM 589 million. In addition, LBS has 22 ongoing development projects with an estimated Gross Development Value (“GDV”) of RM 6.5 billion. As at 30 April 2023, the Group has unbilled sales of approximately RM2.39 billion, which is expected to provide clear earnings visibility over the next two to three years.
Commenting on the results, LBS executive chairman Tan Sri Ir. Lim Hock San said, “We are pleased to kickstart on a positive note with growth in our net profit. It is also encouraging to note that our net profit margin has increased to 9.5% in comparison to 8.3% for the first quarter of 2022. This is attributed to our strategic plans and disciplined cost control to optimise our margins.
LBS recorded property sales of RM 526 million thus far. We continue to roll-out creative marketing campaign to entice buyers, most recently the ‘Rezeki Ekstra Dikongsi Kembali’. This campaign offers homebuyers a chance to win a ‘Duit Raya’ worth more than RM 438,800 along with six attractive bonus offerings upon purchasing their dream home with LBS. In addition, we have other project launches in the pipeline for 2023 which should boost our property sales for the remainder of the year, and we are optimistic we would be able to meet our sales target.
While Bank Negara Malaysia has increased the overnight policy rate up by 25 basis points to 3.0%, we believe that our products, which are within the affordable housing range section and located in strategic areas, would continue to see strong demand. LBS is also encouraged by positive economic initiatives such as the recent government’s decision to subsidise cement prices for affordable housing priced below RM300,000.
LBS said it will continue to build on the success of 2022, with a commitment to present greater value towards our homebuyers, community and stakeholders, we are cautiously optimistic that 2023 will turn out to be a positive year for us.”