2Q earnings boost for LBS Bina
PETALING JAYA: LBS Bina Group Bhd reported a strong set of financial results in the second quarter despite encountering industry-wide challenges such as labour shortages and rising inflationary pressures.
On its outlook moving forward, the property company said its financial performance for the financial year ending Dec 31, 2022 (FY22) will be supported by its unbilled sales which remains strong at Rm2.4bil and gives it revenue visibility.
LBS Bina noted that it will continue to be vigilant in light of the global geopolitical headwinds, to enhance and streamline its systems and processes while actively pursue marketing initiatives that aim to bring greater value to its homebuyers.
In the second quarter, the company’s net profit jumped 116% year-on-year (y-o-y) to Rm35.1mil on the back of revenues also rising by 54% y-o-y to Rm410.4mil.
“LBS Bina reported a set of remarkable earnings this quarter. This is part and parcel due to carefully planned launches and the group’s relentless effort to push forward with innovative marketing strategies. In an environment filled with much uncertainty due to labour shortages, interest rate hikes and raw material price increases, I am glad that we have managed to sustain our earnings.
“While we are aware that solving these issues would be a gradual process, we hope to keep up our momentum heading into the second half of 2022,” LBS Bina executive chairman Tan Sri Lim Hock San said in a statement.
“We have secured Rm1.31bil in sales, equivalent to 82% of our 2022 sales target. We are pleased that we have continued to receive strong take-up rates for our projects in the second quarter, in particular at our LBS Bina Alam Perdana and KITA @ Cybersouth developments.
“This indicates that we are building in the right key areas and delivering affordable housing which satisfies the needs of our homebuyers. We continue to remain focused on our growth plans while prioritising our shareholders as we aim to elevate LBS to greater heights,” he added.
For the cumulative six months ended June 30, the company said its revenue and net profit rose by 23% and 58% respectively to Rm819.4mil and Rm65.3mil as compared to the corresponding period in 2021.
LBS Bina said this increase was largely attributable to the positive take-up rates of its projects at Bukit Jalil, LBS Alam Perdana, KITA @ Cybersouth and Alam Awana Industrial Park. It said development projects within the Klang Valley accounted for more than 84% of its year to date revenue.
LBS Bina said its cash and cash equivalents as at end June 2022, was Rm265.7mil, which is an increase of 62% compared to the previous year.
The company also said it has recorded property sales of Rm1.31bil as at Aug 21 this year with bookings in the pipeline worth Rm313mil.
LBS Bina also said it has a land bank of 2,674 acres for future development.