Greetings, fellow investors and market enthusiasts! Today, we’re diving deep into the latest financial pulse of
, a prominent player in Malaysia’s property development scene, as they unveil their Interim Financial Report for the quarter ended 31 March 2025. This report offers a crucial glimpse into their performance and strategic direction in a dynamic market.
While the first quarter of 2025 has presented a mixed bag of results, with some revenue and profit figures showing a slight dip compared to the same period last year, LBS Bina has demonstrated remarkable resilience in its core business. What truly stands out are their impressive sales bookings and a robust pipeline of unbilled sales and landbank, signaling strong future visibility. Let’s unpack the numbers and see what’s driving LBS Bina forward.
Q1 2025 Performance: A Closer Look at the Numbers
For the first quarter of 2025 (1Q2025), LBS Bina Group recorded a total revenue of RM329 million and a profit after tax (PAT) of RM33 million. This represents a slight decrease when compared to the corresponding quarter in the previous year (1Q2024), which saw revenue of RM338 million and PAT of RM35 million. Despite this, a deeper dive reveals strategic shifts and underlying strengths.
1Q2025 (Current Quarter)
| Revenue | RM329.2 million |
| Profit Before Tax | RM50.6 million |
| Net Profit (PAT) | RM32.5 million |
| Basic EPS (Total) | 1.34 sen |
1Q2024 (Preceding Year Quarter)
| Revenue | RM338.3 million |
| Profit Before Tax | RM54.7 million |
| Net Profit (PAT) | RM35.2 million |
| Basic EPS (Total) | 1.49 sen |
Comparing the current quarter to the immediate preceding quarter (4Q2024), the Group shows a positive rebound in revenue. Revenue for 1Q2025 improved by 15% to RM329 million from RM287 million in 4Q2024, primarily driven by higher progressive site construction activities from ongoing projects. Total PAT also saw a significant increase of 105% from RM15.8 million in 4Q2024, largely due to a one-off foreign exchange loss impacting 4Q2024’s figures.
Segmental Performance: A Mixed Landscape
LBS Bina’s performance is driven by several key business segments, each contributing uniquely to the overall picture:
Property Development
Still the powerhouse, this segment contributed a staggering 96% of the Group’s total revenue. However, for 1Q2025, revenue declined by 4% to RM314 million and PAT by 10% to RM38 million compared to 1Q2024. This was mainly attributed to certain development projects nearing completion in the financial year ended 31 December 2024. Key projects like KITA @ Cybersouth, LBS Alam Perdana, Prestige Residence, and Idaman projects in Klang Valley continue to be the primary revenue drivers, accounting for over 86% of the segment’s revenue.
Construction and Trading
This segment saw a 13% decline in revenue to RM114 million and a swing to a loss after tax (LAT) of RM5 million, compared to a PAT of RM2 million in 1Q2024. The decrease in performance was primarily due to projects nearing completion, coupled with an increase in administrative expenses and costs incurred in a foreign subsidiary.
Management and Investment
Despite a 20% decrease in revenue to RM25 million, this segment impressively swung to a PAT of RM1 million from an LAT of RM6 million in 1Q2024. This turnaround was mainly due to higher intra-group income from project management fees, offsetting lower intra-group dividend income.
Hotel Operations
A bright spot, the hotel segment recorded a 6% increase in revenue to RM2.3 million and a 35% reduction in loss after tax (LAT) to RM0.9 million. This improvement was largely driven by higher room average daily rates.
Others
Comprising retail mall and car park management, treasury management, financial services, and property rental, this segment saw a significant 51% surge in revenue to RM24 million. It also reduced its LAT by 14% to RM0.9 million, showcasing diversified income streams contributing positively.
Strategic Outlook and Future Prospects
LBS Bina started 2025 on a positive note, achieving sales of RM281 million in 1Q2025, marking a robust 33% increase from RM211 million in the same quarter last year. This growth was primarily fueled by strong demand for state-of-the-art light and medium factories at Alam Perdana Industrial Park and the successful launch of Cameron Centrum’s second precinct, Centrum Iris.
The Group’s total bookings remain healthy at RM256 million, reflecting sustained buyer confidence. LBS Bina is committed to its “8 x 8 Strategy,” which aims to roll out projects with a total gross development value (GDV) of approximately RM8.0 billion from 2025 to 2027. This strategy underscores their focus on sustainable growth and market-driven development.
With a substantial landbank of 3,793 acres as at 30 April 2025, LBS Bina possesses a sustainable pipeline for future development projects. Furthermore, unbilled sales of RM1.61 billion provide strong revenue and earnings visibility moving forward.
The Group maintains a cautiously optimistic outlook. The sustained strength in the industrial segment and the ongoing recovery in the residential property market are expected to bode well for their prospects. LBS Bina emphasizes its agility and responsiveness in seizing emerging opportunities and addressing evolving market demands across all business segments, aligning firmly with their “8 x 8 Strategy” for resilient and balanced growth.
Key Financial Health Indicators
As at 31 March 2025, the Group’s total assets stood at RM4.495 billion, up from RM4.347 billion at 31 December 2024. Total equity decreased slightly to RM1.981 billion from RM2.092 billion, mainly due to the redemption of Perpetual Sukuk totalling RM130 million. Net assets per share attributable to owners of the parent were RM1.05.
The Group’s borrowings and debt securities stood at RM1.301 billion, with RM332.4 million in short-term borrowings and RM968.7 million in long-term borrowings. This includes Islamic Medium Term Notes of RM596.3 million. The company’s cash and cash equivalents were RM509.6 million at the end of the period.
Dividends: Rewarding Shareholders
LBS Bina has announced positive news for its shareholders. For the financial year ended 31 December 2024, the Board of Directors declared a first interim single-tier dividend of 1.00 sen per ordinary share, payable on 10 July 2025. Additionally, a final single-tier dividend of 1.10 sen per ordinary share has been proposed, subject to shareholder approval, with payment scheduled for 25 September 2025.
Summary and Investment Considerations
LBS Bina Group Berhad’s 1Q2025 report paints a picture of a company navigating a complex market with strategic foresight. While some segments experienced a decline in revenue and profitability due to project maturity, the Group’s core property development business remains robust, supported by strong new sales and a substantial landbank. The positive momentum in industrial property and the recovery in residential markets provide a solid foundation for future growth.
The Group’s commitment to its “8 x 8 Strategy” and its significant unbilled sales pipeline offer good visibility on future earnings. However, like any business, there are factors to consider:
- **Project Completion Impact:** The decline in revenue and PAT in the property development segment is primarily due to projects nearing completion. While new launches are planned, the timing and success of these will be crucial to offset this.
- **Construction Segment Challenges:** The swing to loss in the construction and trading segment warrants attention, with increased administrative expenses and foreign subsidiary costs identified as key contributors.
- **Corporate Proposal Dependencies:** Several joint venture agreements and MOUs are still pending the fulfillment of conditions precedent or have expired. The successful execution and realization of these initiatives will be important for future growth.
- **Litigation:** The ongoing litigation for RM43.03 million, while the directors believe no significant exposure will arise, introduces an element of uncertainty until resolved.
Overall, LBS Bina appears to be strategically positioned to capitalize on market opportunities, with a clear vision for growth and a focus on returning value to shareholders through dividends. Their diversified approach and extensive landbank offer a degree of resilience in a competitive landscape.
From a professional perspective, LBS Bina’s Q1 2025 results, despite some year-on-year dips, highlight a company that is actively managing its project lifecycle and strategically positioning itself for future growth, particularly in the industrial and affordable housing segments. The substantial unbilled sales and landbank are significant assets that provide a buffer and future earnings potential.
What are your thoughts on LBS Bina’s performance this quarter? Do you believe their strategic focus on the industrial segment and the planned RM8.0 billion GDV projects will successfully drive their growth in the coming years? Share your insights and perspectives in the comments below!
