LBS BINA GROUP BHD

THE GROUP unveiled its plans for the coming year to the media recently while also recapping on its performance in 2017, with group managing director Tan Sri Lim Hock San also indicating a sales target of RM1.8bil for 2018.

While seemingly daunting, Public Investment Bank Research (PIB Research) thinks this can be achieved considering that about RM1.4bil worth of on-going (and relatively sellable) projects are being carried over into the new year from the previous year.

“Unbilled sales are at a healthy RM1.52bil, underpinning earnings visibility for the next two years at the very least. With remaining land bank of 3,806 acres carrying an estimated RM29bil in gross development value (GDV), the LBS Bina Group will remain in the game for a long time yet.”

The research house pointed out that a total of 10 projects carrying a total GDV of RM2.33bil were launched in 2017, with sales of RM1.43bil achieved. About 69% (RM982mil) of the sales were done in the Klang Valley, with 58% of the properties priced below RM500,000 per unit.

For 2018, eight new projects worth RM2.19bil will be launched, with primary concentration in the Klang Valley.

“Of the total 5,255 units on offer throughout the year, close to 40% worth RM884mil will be landed properties, cementing its entrenched position as leading township developer in the domestic mass-market affordable housing segment. Price ranges are mostly sub-RM500,000.”

On its Zhuhai International Circuit (China), the research house said the group is continuing to assess possibilities, with its preferred course of action either a joint venture or a separate listing given the scale of investments involved.