LBS Bina revises down FY20 sales target to RM1b

It was altered accordingly due to the challenging market situation caused by the Covid-19 pandemic and MCO


LBS Bina Group Bhd has revised its sales target for its properties for the year to RM1 billion from RM1.6 billion as previously announced in January.

Group MD Tan Sri Lim Hock San (picture) said the sales target was altered accordingly due to the challenging market situation caused by the Covid-19 pandemic and by the government’s movement control order (MCO) which has had an impact on sales.

“We have achieved RM780 million sales as of Sunday. Looking at the sales momentum, we can surpass the RM1 billion target in September or October.

“If the momentum remains, we may achieve the initial sales target of RM1.6 billion for this year,” Lim said at a media briefing in Petaling Jaya, Selangor yesterday.

LBS Bina remains confident of recording good sales this year with its product offerings in addition to the support from the government-backed Home Ownership Campaign (HOC) and Overnight Policy Rate reduction by the central bank.

As such, the developer plans to launch properties with a combined estimated gross development value (GDV) of RM3 billion in the next nine months.

The new projects in the pipeline include Kita Sejati and Kita Mekar in Kita @ Cybersouth, as well as Ritma Perdana and new block of Melodi Perdana apartments in LBS Alam Perdana in Selangor.

Other projects include the Vines 3 and Cameron Golden Hills at Tanah Rata and Bayu Hills at Genting Permai in Pahang; the Emerald Garden 3 in Bandar Putera Indah in Johor.

Lim said LBS Bina has 14 projects under the new HOC which started from June 2020 to May 2021.

The HOC will run for a year with stamp duty exemption given on the first RM1 million worth of property’s value on the memorandum of transfer for properties priced from RM300,000 to RM2.5 million and 100% stamp duty exemption for the financing agreement.

To date, LBS Bina has a total of 15 ongoing projects with an estimated GDV of RM4.3 billion and unbilled sales of RM2 billion as at July 15, 2020.

The group owns 3,591 acres (1,453.22ha) of future landbank as at June 30, 2020, which is projected to keep the company busy for the next 10 to 15 years.

LBS Bina achieved RM1.63 billion in sales last year.

For the first quarter of this year (1Q20), LBS Bina’s net profit declined 47.17% year-on-year (YoY) to RM9.34 million due to lower contribution from all business segments.

Its management, investment and others segment recorded loss before tax of RM2.22 million compared to RM2.88 profit before tax (PBT) in 1Q19, while the motor racing circuit segment posted RM3.99 million loss before tax against RM2.19 million loss before tax in 1Q19.

PBT for the property development segment decreased to RM29.26 million from RM31.34 million in 1Q19, while PBT for construction and trading segment fell to RM1.42 million from RM4.56 million in 1Q19.

The developer’s quarterly revenue was down 8.36% YoY to RM299.27 million.