KUALA LUMPUR: LBS Bina Group Bhd posted a 154% year-on-year (y-o-y) growth in net profit to RM59.6mil, on the back of 15% higher revenue to RM922.4mil, for its nine months ended Sept 30, 2021.
In a filing with Bursa Malaysia, the property developer said this was mainly due to the sale of inventories, good take-up rates and steady construction progress of its ongoing projects at Residensi Bintang Bukit Jalil, Alam Awana Industrial Park, Cameron Centrum, KITA @ Cybersouth and LBS Alam Perdana.
Projects within the Klang Valley remain as the largest revenue contributor, accounting for more than 81% of the group’s revenue for the nine-month period.
Meanwhile, for its third quarter ended Sept 30, 2021, the group posted a 7% drop y-o-y in net profit to RM19.5mil, as revenue was down 24.3% to RM254mil.
This was mainly due to the re-implementation of full movement control order in June 2021, which affected the sales and construction progress of its projects.
The group secured total sales of RM1.1bil and bookings in pipeline of RM950mil as at Nov 22, 2021.
LBS Bina said the strong performance proved that affordable housing is still highly in demand, which is in line with the Housing Bureau Statistics data that shows Malaysia has a shortage of one million units of affordable housing.
The group noted that in the Budget 2022, the government allocated RM1.5bil to continue with low-cost housing projects and an additional RM2bil to assist those without steady income to own a home through the Housing Credit Guarantee Scheme.
LBS Bina said it would continue to focus on the affordable residential housing market.
“With our investment in the industrialised building system precast concrete plants, we are able to support the Selangor government’s goal to build 30,000 affordable homes in strategic locations by year 2025,” it said.
Currently, the group has 20 ongoing projects with a gross development value (GDV) of RM5.65bil, land bank for future development of 2,794 acres with GDV of RM24.3bil and unbilled sales of RM2.17bil.
However, LBS Bina said the outlook for the property sector is expected to remain challenging, given the adverse market condition following the country’s prolonged Covid-19 pandemic.