LBS Bina is on track to meet its RM1.2bil sales target for 2021

By NST Property, Published on November 24, 2021

LBS Bina Group Bhd had secured RM1.1 billion in property sales and total bookings in the pipeline of RM950.2 million as of November 22, 2021. File/Photo

LBS Bina Group Bhd has achieved 92 per cent of its RM1.2 billion sales target for 2021, according to its executive chairman Tan Sri Lim Hock San.

He revealed in a statement that as of November 22, 2021, the company had secured RM1.1 billion in property sales and total bookings in the pipeline of RM950.2 million.

"This illustrates that we are building in the right areas and delivering affordable housing which satisfies the needs of the general public. While the outlook for the property sector is expected to remain challenging, we are encouraged by Malaysia's return to normalcy, having achieved over 90 per cent vaccination rate among the adult population," said Lim.

LBS Bina Group Bhd executive chairman Tan Sri Lim Hock San. File/Photo

Based on data released by the National Property Information Centre, there was an 18.5 per cent increase in the number of transactions for properties below RM500,000 in the first half of 2021, compared to the corresponding period in 2020.

According to Lim, this is a positive sign for the property sector, particularly for affordable housing, because it indicates that the property market recovering.

LBS has released its third-quarter results for the fiscal year ending December 31, 2021. (3Q FYE21).

Despite Covid-19-related restrictions and the re-implementation of the Full Movement Control Order, the company achieved revenue and profit after tax and minority interest (PATAMI) of RM254 million and RM18.1 million, respectively, for the quarter under review.

In the nine months ended September 30, 2021 (9MFYE21), revenue and PATAMI increased by 15 per cent and 153.7 per cent, respectively, to RM922.4 million and RM60 million, compared to the same period in 2020.

The 9MFYE21 PATMI surpassed the total PATAMI of RM51.3 million in 2020.

According to Lim, the increase was largely due to the company's ongoing development projects at KITA @ Cybersouth, LBS Alam Perdana, Alam Awana Industrial Park, Residensi Bintang Bukit Jalil, and Cameron Centrum's positive take-up rates and steady construction progress.

He hoped to maintain the current positive earnings momentum through the end of 2021.

LBS currently has 20 ongoing development projects totaling RM5.65 billion in gross development value (GDV).

The landbank for future development totals 2,794 acres, with a GDV of RM24.3 billion and unbilled sales of RM2.17 billion.

"According to the Housing Bureau Statistics, Malaysia still has a shortage of one million units of affordable residential housing. On the back of this, we recently launched Prestige Residence in Seri Kembangan and landed houses in Kita Mesra at KITA @ Cybersouth, whereby we have seen encouraging sales," Lim said.

KITA Mesra consists of 646 affordable landed homes (townhouses, double-storey and single-storey terraced houses) with a GDV of RM309 million.

Lim stated in a separate statement that KITA Mesra is yet another neighbourly residence that is set to follow in the footsteps of KITA @ Cybersouth township, fulfilling fellow Malaysians' homeownership dreams with affordable pricing for new family starters.

"We believe that, despite the ongoing pandemic, demand for landed properties will continue to rise, and this project can benefit buyers with its reasonable price range as well as long-term value for investments," he said.