KUALA LUMPUR: LBS Bina Group Bhd reported a 4.9 per cent increase in net profit for the quarter ended June 30, 2024 (2QFY2024), rising to RM34.64 million from RM33.01 million in the same quarter last year.
This growth was driven by strong contributions from key property development projects in Klang Valley.
Revenue for the quarter also saw a significant year-on-year increase of 16.5 per cent, reaching RM431.85 million, up from RM370.75 million, thanks to an uptick in on-site development activities.
For the first half of FY2024, LBS Bina's net profit showed a marginal increase of 2.6 per cent, amounting to RM65.17 million compared to RM63.51 million during the same period last year.
Revenue for the period rose by 2.5 per cent to RM770.13 million from RM751.65 million, according to the company's Bursa Malaysia filing.
The property development segment remained the dominant contributor, accounting for 97 per cent (or RM747.2 million) of the total revenue for 1HFYE2024. This revenue was primarily generated from projects such as KITA @ Cybersouth, LBS Alam Perdana, Prestige Residence, and Idaman projects.
LBS group executive chairman Tan Sri Ir (Dr) Lim Hock San attributed the positive results to the successful execution of the company's launched projects.
As of August 21, 2024, LBS Bina had introduced seven projects with a combined gross development value (GDV) of RM1.6 billion and achieved total sales of RM794 million.
A notable highlight was the Alam Perdana Central Hub, launched in April 2024, which experienced strong demand, generating RM254.5 million in sales.
Lim said that this demand was largely fuelled by small and medium-sized enterprises looking for a strategic industrial location to support their operations.
Looking forward, LBS Bina remains confident in sustaining its strong performance, supported by a landbank totalling 2,686 acres and unbilled sales of RM1.7 billion as of July 31, 2024.
Lim said the company anticipates the finalisation of the disposal of Lamdeal Investments Limited Group, including Zhuhai International Circuit, by October.
This transaction, which involves an equity transfer and debt repayment, is expected to enhance the company's financial position, with the proceeds allocated towards working capital, loan repayment, and funding for growth initiatives.
"This strategic move aligns with our objective of preserving capital for reinvestment in high-return projects, debt repayment, or other value-enhancing initiatives," he said.