LBS Bina group’s after tax profit soars by 96pc in Q3

KUALA LUMPUR, Nov 23 — LBS Bina Group Bhd reported a strong set of results for the third quarter of the financial year ending December 31, 2022, driven by an impressive revenue of RM528.9 million, equal to 108 per cent year-on-year growth from Q3 in 2021.

Their profit after tax increased by 96 per cent from RM20 million to RM39.2 million, while non-controlling interests increased from RM18 million to RM25.4 million year-on-year.

“LBS has performed remarkably well this quarter and I am indeed pleased by our results. It is encouraging to note that demand for affordable properties continues to remain strong,” LBS executive chairman Tan Sri Lim Hock San said in a statement.

“The strategic locations of our developments and affordable pricing have paid off handsomely as we have managed to maintain our performance throughout 2022.

“Exciting times are ahead for the remainder of the year as we intend to launch RM424 million worth of properties in the fourth quarter.

“This should provide us with leverage to close off 2022 on a positive note,” he said.

On a segmental basis, property development remained the group’s main earnings contributor, with a double in revenue from RM243.2 million to RM512.2 million in Q3 2022.

The increase was largely attributable to the positive take-up rates of LBS’ key projects at Bukit Jalil, LBS Alam Perdana, KITA @ Cybersouth, and Alam Awana Industrial Park.

The group also reported that development projects within the Klang Valley accounted for more than 85 per cent of its revenue for the current financial period.

For the nine months that ended September 30, 2022, revenue surged by 46 per cent to RM1.3 billion, while non-controlling interests went up by 69 per cent to RM100.6 million, as compared to the same period in 2021.

The group announced that as of November 21, 2022, it has surpassed its property sales target of RM1.6 billion by 14 per cent. It is now at RM1.83 billion.

As of October 31, 2022, LBS has a land bank for future development of 1,078 hectares and healthy unbilled sales of RM2.54 billion.

He added that according to Bank Negara, the country may face a challenging economic climate in 2023 as the worsening supply chain, geopolitical uncertainty, and market volatility could upset growth.

“However, we are cautious of these negative factors and believe with our focused and strategic hands-on approach, we should be able to minimise disruptions to our business in the quarters ahead,” he said.

LBS is an internationally recognised group with a vision for building and inspiring delightful spaces, is a renowned township developer that has amassed numerous awards through its various developments.