PETALING JAYA: LBS Bina Group Bhd is targeting RM1 billion worth of annual property sales in the near term as the company focuses on various segments of the residential market apart from commercial and industrial real estate.
Managing director Datuk Lim Hock San said the target was deemed achievable as the company was expected to achieve property sales of RM800 million and RM950 million for financial years 2012 and 2013 respectively. This will be boosted by the developer’s offerings in the affordable, medium and high-end segments.
“We are confident,” Lim told reporters after the company EGM yesterday. In 2011, LBS raked in property sales of RM650 million. Its unbilled sales stood at RM649 million as of last year.
Lim, who acknowledged that 2012 would be a tough year for global business, said LBS’ RM1 billion target was subject to the macro landscape.
Apart from the ongoing European debt crisis, Lim also highlighted the threats of rising construction and land costs which could crimp the company’s bottom line.
Last year, LBS lined up 16 launches involving 2,400 properties worth about RM1.5 billion. These are in addition to the 21 existing projects with a gross development value of RM665 million, according to Lim.
LBS’ 2,300-acre landbank across Selangor, Johor, Perak and Pahang can accommodate about RM9.1 billion worth of properties, according to Lim. The developer also has around 200 acres in China.
In Malaysia, LBS’ existing projects include the upmarket RM3.5 billion mixed development D’Island Residence within a 175-acre tract in Puchong and the RM3 billion Bandar Saujana Putra affordable properties on a 835-acre tract within the southern corridor of Selangor. Elsewhere, LBS is the developer of Taman Golden Hills in Cameron Highlands in Pahang and Bandar Putera Indah in Batu Pahat, Johor.
Lim said LBS might venture into Sabah and Sarawak, but this would hinge on the feasibility of the property development projects. Lim said the firm had been approached to undertake projects in Sabah, but he declined to provide details.
“Although 2012 will be a challenging year globally, we believe the demand for property in Malaysia will remain strong as prices continue to rise although at a lower rate.
“As part of our multi-pronged strategy, we will aggressively develop not just residential homes but also non-residential property,” Lim said.
Commercial and industrial projects by LBS include the Tasik Perdana Industrial Park in Puchong and Saujana Business Park within Bandar Saujana Putra.
LBS’ strategy is bearing fruit as net profit rose more than five times to RM27.7 million in the nine months ended Sept 30, 2011 from RM5.32 million a year earlier, while revenue grew 59% to RM302.06 million from RM190.43 million. The better numbers were supported by progressive recognition of earnings from LBS’ ongoing property projects.
At the EGM yesterday, shareholders of LBS approved the company’s proposal to buy back up to 10% of the company’s shares from the open market. Lim said the buybacks highlighted the company’s concern that its shares were undervalued.
The stock closed at 78.5 sen, rising one sen from its previous close on Dec 30. Its latest net assets per share stands at RM1.08.
This article appeared in The Edge Financial Daily, January 4, 2012.
Managing director Datuk Lim Hock San said the target was deemed achievable as the company was expected to achieve property sales of RM800 million and RM950 million for financial years 2012 and 2013 respectively. This will be boosted by the developer’s offerings in the affordable, medium and high-end segments.
“We are confident,” Lim told reporters after the company EGM yesterday. In 2011, LBS raked in property sales of RM650 million. Its unbilled sales stood at RM649 million as of last year.
LBS takes aim... LBS Bina Group Bhd is targeting RM1 billion worth of annual property sales in the near term, managing director Datuk Lim Hock San (centre) told a press conference yesterday. With him are executive directors Cynthia Lim (left) and Alan Chia
Lim, who acknowledged that 2012 would be a tough year for global business, said LBS’ RM1 billion target was subject to the macro landscape.
Apart from the ongoing European debt crisis, Lim also highlighted the threats of rising construction and land costs which could crimp the company’s bottom line.
Last year, LBS lined up 16 launches involving 2,400 properties worth about RM1.5 billion. These are in addition to the 21 existing projects with a gross development value of RM665 million, according to Lim.
LBS’ 2,300-acre landbank across Selangor, Johor, Perak and Pahang can accommodate about RM9.1 billion worth of properties, according to Lim. The developer also has around 200 acres in China.
In Malaysia, LBS’ existing projects include the upmarket RM3.5 billion mixed development D’Island Residence within a 175-acre tract in Puchong and the RM3 billion Bandar Saujana Putra affordable properties on a 835-acre tract within the southern corridor of Selangor. Elsewhere, LBS is the developer of Taman Golden Hills in Cameron Highlands in Pahang and Bandar Putera Indah in Batu Pahat, Johor.
Lim said LBS might venture into Sabah and Sarawak, but this would hinge on the feasibility of the property development projects. Lim said the firm had been approached to undertake projects in Sabah, but he declined to provide details.
“Although 2012 will be a challenging year globally, we believe the demand for property in Malaysia will remain strong as prices continue to rise although at a lower rate.
“As part of our multi-pronged strategy, we will aggressively develop not just residential homes but also non-residential property,” Lim said.
Commercial and industrial projects by LBS include the Tasik Perdana Industrial Park in Puchong and Saujana Business Park within Bandar Saujana Putra.
LBS’ strategy is bearing fruit as net profit rose more than five times to RM27.7 million in the nine months ended Sept 30, 2011 from RM5.32 million a year earlier, while revenue grew 59% to RM302.06 million from RM190.43 million. The better numbers were supported by progressive recognition of earnings from LBS’ ongoing property projects.
At the EGM yesterday, shareholders of LBS approved the company’s proposal to buy back up to 10% of the company’s shares from the open market. Lim said the buybacks highlighted the company’s concern that its shares were undervalued.
The stock closed at 78.5 sen, rising one sen from its previous close on Dec 30. Its latest net assets per share stands at RM1.08.
This article appeared in The Edge Financial Daily, January 4, 2012.
