LBS BINA GROUP BERHAD: Meet Expectations




LBS BINA GROUP BERHAD: Meet Expectations


PUBLIC INVESTMENT BANK

PublicInvest Research Results Review

KDN PP17686/03/2013(032117)

Thursday, August 21, 2025

Outperform

LBS BINA GROUP BERHAD: Meet Expectations

DESCRIPTION

Mid-sized property developer with 3,587 acres of developable land in Selangor, Johor, Pahang and Perak.

KEY STOCK DATA

Market Capitalisation (RMm)

No. of Shares (m)

711.1

1,545.8

12-Month Target Price

Current Price

Expected Return

Previous Target Price

RM0.67

RM0.46

46%

RM0.67

Market

Sector

Bursa Code

Bloomberg Ticker

Shariah-compliant

Main

Property

5789

LBS MK

Yes

SHARE PRICE CHART

(Chart visualization omitted. Data provided below)

Price Range (RM) Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25
Approximate Level 0.30 0.35 0.40 0.45 0.50 0.55 0.46

52 Week Range (RM): 0.51-0.89

Month Average Vol (‘000): 3,052.1

SHARE PRICE PERFORMANCE

1M 3M 12M
Absolute Returns -0.9 -0.8 -11.5
Relative Returns -1.8 4.3 -15.2

MAJOR SHAREHOLDERS

%
Gaterich Sdn Bhd 37.0
Kumpulan Wang Amanah Persaraan 9.0
Lim Wee Chai 3.5

Meet Expectations

LBS Bina (LBS) reported 2QFY25 net profit of RM27.1m (-22.1% YoY, -4.0% QoQ), which came in within expectations. YTD, Group net profit of RM55.3m (-16.2% YoY) constituted about 49% and 45% of the our and consensus full-year profit forecast. Again, development projects within the Klang Valley such as KITA @ Cybersouth, LBS Alam Perdana, Prestige Residence and Idaman projects remained the largest revenue and PAT contributor, whereby their revenue accounted for more than 86% of the Group’s revenue in 1HFY25. We understand that Group performance YTD was slower as certain development projects were completed or nearing their completion stage. Elsewhere, the Group has achieved 1HY25 pre-sales of RM552.8m (1HY24: RM547.9m), which is only about 37% of the Group’s FY25 sales target of RM1.5bn, as launches are only expected to ramp up in 2HFY25. We understand that sales are now at about RM676m (as at 13 August 2025), with about RM387m bookings in the pipeline. All told, no change to our earnings estimates and we maintain our Outperform with unchanged TP of RM0.67 (c.30% discount to NTA).

  • Group property revenue dropped by 18% YoY to RM611m, and correspondingly, Group PAT dropped 24% YoY to RM77m as certain development projects were completed or nearing their completion stage. Property development continued to be the largest Group’s revenue contributor, accounted for 95% of the Group’s total revenue. Development projects within the Klang Valley (the key development projects at KITA @ Cybersouth, LBS Alam Perdana, Prestige Residence and Idaman projects) remained as the largest revenue and PAT contributor, where their revenue accounted for more than 86% of the Group’s revenue in 1HFY25.
  • 1HY25 pre-sales of RM552.8m (1HY24: RM547.9m), only accounted for 37% of the Group’s FY25 sales target of RM1.5bn, as launches only expected to ramp up in 2HFY25. We understand that sales are now at about RM676m (as at 13 August 2025), with about RM387m bookings in the pipeline. Group pre-sales were predominantly from the Klang Valley (66%), while Johor and Pahang contributed 18% and 16% respectively. Unbilled sales moderated to RM1.4bn in 2QFY25 from about RM1.6bn in 1QFY25. Separately, it has only launched projects worth about RM704m in 1HFY25, with the remaining c.RM2.3bn more to be unveiled in 2HFY25.

KEY FORECAST TABLE

FYE Dec (RM m) 2023A 2024A 2025F 2026F 2027F CAGR (%)
Revenue 1,806.1 1,434.7 1,471.5 1,508.0 1,550.0 -3.8%
Operating Profit 314.3 417.6 258.2 262.4 280.0 -2.8%
Pre-tax Profit 249.4 353.0 205.9 210.9 229.4 -2.1%
Net Profit 146.9 240.2 112.9 116.2 130.4 -2.9%
EPS (Sen) 9.5 15.5 7.3 7.5 8.4 -2.9%
FD EPS (Sen) 8.9 14.6 6.9 7.1 7.9 -2.9%
P/E (x) 4.8 3.0 6.3 6.1 5.5
FD P/E (x) 5.2 3.2 6.7 6.5 5.8
DPS (Sen) 2.0 2.0 2.0 2.0 2.0
Dividend Yield (%) 4.3 4.3 4.3 4.3 4.3

Source: Company, PublicInvest Research estimates

PUBLIC INVESTMENT BANK BERHAD

Table 2: Results Review

FY Dec (RM’000) 2Q25 2Q24 1Q25 Y-o-Y chg (%) Q-o-Q chg (%) FY25 FY24 Y-o-Y chg (%)
Revenue 309.8 431.9 329.2 -28.3 -5.9 639.0 770.1 -17.0
Cost of sales -202.6 -297.1 -221.1 -31.8 -8.4 -423.7 -521.6 -18.8
Gross profit 107.2 134.7 108.1 -20.4 -0.8 215.3 248.5 -13.4
Interest Income 2.7 4.1 3.4 -33.7 -19.4 6.1 6.4 -5.7
Other income 5.2 3.2 6.8 60.4 -24.6 12.0 6.8 75.7
Admin expenses -52.8 -60.0 -53.8 -11.9 -1.7 -106.6 -109.8 -2.9
Finance Costs -14.0 -14.7 -14.0 -5.2 -0.3 -28.0 -30.1 -7.1
Associate 0.0 0.0 0.0 NA 0.0 0.0 NA
Pre-tax profit 48.3 67.5 50.6 -28.4 -4.5 98.8 122.2 -19.1
Income tax -18.8 -24.4 -18.1 -23.1 3.9 -36.8 -42.7 -13.8
Minorities -2.4 -8.3 -4.3 -70.7 -42.9 -6.7 -12.9 -48.0
Net profit 27.1 34.8 28.2 -22.1 -4.0 55.3 66.0 -16.2
Gross Margin (%) 34.6 31.2 32.8 74.2 58.0
Pre-tax Margin (%) 15.6 15.6 15.4 21.3 27.3
Net Margin (%) 8.7 8.0 8.6 12.1 15.0

Source: Company

PUBLIC INVESTMENT BANK BERHAD

KEY FINANCIAL DATA

INCOME STATEMENT DATA

FYE Dec (RM m) 2023A 2024A 2025F 2026F 2027F
Revenue 1,806.1 1,434.7 1,471.5 1,508.0 1,550.0
Operating expenses -1,491.9 -1,017.1 -1,213.3 -1,245.6 -1,270.0
Operating Profit 314.3 417.6 258.2 262.4 280.0
Other Gains / (Losses) -22.6 -10.5 0.1 0.1 0.1
Finance Costs -42.3 -54.1 -52.4 -51.6 -50.7
Pre-tax Profit 249.4 353.0 205.9 210.9 229.4
Income Tax -81.2 -74.2 -70.0 -71.7 -78.0
Effective Tax Rate (%) 32.6 21.0 34.0 34.0 34.0
Minorities -18.7 -23.0 -23.0 -23.0 -22.0
Net Profit 146.9 240.2 112.9 116.2 130.4

Growth

Revenue (%) -1% -21% -17% 2% 3%
Gross Profit (%) 0% 33% -5% 2% 7%
Net Profit 7% 64% -7% 3% 12%

Source: Company, PublicInvest Research estimates

BALANCE SHEET DATA

FYE December (RM m) 2023A 2024A 2025F 2026F 2027F
Property, Plant and Equipment 406.0 406.0 273.7 419.8 434.0
Cash and Cash Equivalents 707.7 707.7 567.5 659.5 674.0
Trade Receivables 455.4 452.4 510.7 515.8 521.0
Other Assets (incl. intangibles) 2,706.1 2,778.0 3,168.5 3,023.5 3,107.2
Total Assets 4,275.2 4,344.1 4,520.5 4,618.6 4,736.2
Payables 1,593.1 1,640.7 1,224.1 1,382.6 1,422.9
Loan and Borrowings 768.2 768.2 957.7 941.4 925.2
Deferred tax 0.0 0.0 0.0 0.0 0.0
Other Liabilities 67.9 19.6 71.1 35.6 36.6
Total Liabilities 2,429.2 2,429.5 2,254.9 2,361.6 2,386.7
Shareholders’ Equity 1,678.8 1,851.0 1,897.7 1,947.8 2,012.7
Total Equity and Liabilities 4,275.2 4,344.1 4,520.5 4,618.6 4,736.2

Source: Company, PublicInvest Research estimates

PER SHARE DATA & RATIOS

FYE Dec (RM m) 2023A 2024A 2025F 2026F 2027F
Book Value Per Share 1.09 1.20 1.23 1.26 1.30
NTA Per Share 1.02 1.13 1.16 1.20 1.27
EPS (Sen) 9.5 15.5 7.3 7.5 8.4
DPS (Sen) 2.0 2.0 2.0 2.0 2.0
Payout Ratio (%) 21.1 12.9 27.4 26.6 23.7
ROA (%) 3.4 5.5 2.5 2.5 2.8
ROE (%) 8.7 13.0 5.9 6.0 6.5

Source: Company, PublicInvest Research estimates

PUBLIC INVESTMENT BANK BERHAD

RATING CLASSIFICATION

STOCKS

Rating Description
OUTPERFORM The stock return is expected to exceed a relevant benchmark’s total of 10% or higher over the next 12months.
NEUTRAL The stock return is expected to be within +/- 10% of a relevant benchmark’s return over the next 12 months.
UNDERPERFORM The stock return is expected to be below a relevant benchmark’s return by -10% over the next 12 months.
TRADING BUY The stock return is expected to exceed a relevant benchmark’s return by 5% or higher over the next 3 months but the underlying fundamentals are not strong enough to warrant an Outperform call.
TRADING SELL The stock return is expected to be below a relevant benchmark’s return by -5% or more over the next 3 months.
NOT RATED The stock is not within regular research coverage.

SECTOR

Rating Description
OVERWEIGHT The sector is expected to outperform a relevant benchmark over the next 12 months.
NEUTRAL The sector is expected to perform in line with a relevant benchmark over the next 12 months.
UNDERWEIGHT The sector is expected to underperform a relevant benchmark over the next 12 months.

DISCLAIMER

This document has been prepared solely for information and private circulation only. It is for distribution under such circumstances as may be permitted by applicable law. The information contained herein is prepared from data and sources believed to be reliable at the time of issue of this document. The views/opinions expressed herein are subject to change without notice and solely reflects the personal views of the analyst(s) acting in his/her capacity as employee of Public Investment Bank Berhad (“PIVB”). PIVB does not make any guarantee, representations or warranty neither expressed or implied nor accepts any responsibility or liability as to its fairness liability adequacy, completeness or correctness of any such information and opinion contained herein. No reliance upon such statement or usage by the addressee/anyone shall give rise to any claim/liability for loss of damage against PIVB, Public Bank Berhad, its affiliates and related companies, directors, officers, connected persons/employees, associates or agents.

This document is not and should not be construed or considered as an offer, recommendation, invitation or a solicitation of an offer to purchase or subscribe or sell any securities, related investments or financial instruments. Any recommendation in this document does not have regards to the specific investment objectives, financial situation, risk profile and particular needs of any specific persons who receive it. We encourage the addressee of this document to independently evaluate the merits of the information contained herein, consider their own investment objectives, financial situation, particular needs, risks and legal profiles, seek the advice of their, amongst others, tax, accounting, legal, business professionals and financial advisers before participating in any transaction in respect of any of the securities of the company(ies) covered in this document.

PIVB, Public Bank Berhad, our affiliates and related companies, directors, officers, connected persons/employees, associates or agents may own or have positions in the securities of the company(ies) covered in this document or any securities related thereto and may from time to time add or dispose of, or may be materially interested in, any such securities. Further PIVB, Public Bank Berhad, our affiliates and related companies, associates or agents do and/or seek to do business with the company(ies) covered in this document and may from time to time act as market maker or have assumed an underwriting commitment in the securities of such company(ies), may sell them or buy them from customers on a principal basis, may have or intend to accommodate credit facilities or other banking services and may also perform or seek to perform investment banking, advisory or underwriting services for or relating to such company(ies) as well as solicit such investment advisory or other services from any entity mentioned in this document. The analyst(s) and associate analyst(s) principally responsible for the preparation of this document may participate in the solicitation of businesses described aforesaid and would receive compensation based upon various factors, including the quality of research, investor client feedback, stock pickings and performance of his/her recommendation and competitive factors. The analyst(s) and associate analyst(s) may also receive compensation or benefit (including gift and company/issuer-sponsored and paid trips in line with the Bank’s policies) in executing his/her duties. Hence, the addressee or any persons reviewing this document should be aware of the foregoing, amongst others, may give rise to real or potential conflicts of interest.

Published and printed by:

PUBLIC INVESTMENT BANK BERHAD (20027-W)

26th Floor, Menara Public Bank 2

78, Jalan Raja Chulan

50200 Kuala Lumpur

T 603 2268 3000

F 603 2268 3014

Tan Siang Hing

T 603 2268 3016

F 603 2268 3014

E tan.sianghing@publicinvestbank.com.my


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