KUALA LUMPUR (Jan 4): LBS Bina Group Bhd has lowered its sales projection for 2024 to RM1.8 billion after it missed its RM2 billion sales target last year as the group deferred launches of three property projects.

Executive chairman Tan Sri Lim Hock San, however, maintained that the property outlook this year remains bright, citing the widely expected stronger economic growth in the country and continued landbank expansion by other property developers.

“LBS had to push back a few launches to this year taking into account market sentiments and economic conditions, which led to a slight dip in our property sales. Nevertheless, we remain focused on delivering our targets for this year,” he told reporters at a media briefing on Thursday.

“You can see the recent acquisition of lands by other developers. It means that other developers are so confident. Otherwise, if the market is not good, no point for them to buy [new lands]. In fact, LBS has also acquired one or two [parcels of land] for the future,” he added.

LBS Bina Group Bhd executive chairman Tan Sri Lim Hock San (fourth from left) with members of his staff at the media briefing. (Photo by Sam Fong)

Lim said the group is also seeking authority approvals for a few industrial projects, which already saw “many bookings” and could potentially be launched by the second or third quarter this year.

“There are many bookings [for] industrial projects, so we are waiting for approvals, once the approval is out, I think the sales will be very strong. That is why we are confident we can achieve our goal, maybe more,” he said.

For the financial year ended Dec 31, 2023 (FY2023), LBS recorded RM1.701 billion in property sales, about RM300 million short of its RM2 billion target, after deferring one project each in Cameron Highlands, Gohtong Jaya in Genting, and Puchong, Selangor.

For FY2024, the group planned to launch 10 new projects with a combined gross development value (GDV) of RM2.33 billion.

Currently, Lim said LBS is actively engaged in 19 ongoing development projects, collectively estimated to have a GDV of RM5 billion.

As at FY2023, he updated that LBS’ landbank spans approximately 2,767 acres, with unbilled sales totalling around RM1.99 billion, providing earnings visibility for the next two-to-three years.

For the first nine-month period of FY2023 (9MFY2023), LBS recorded a net profit of RM103.72 million or 5.73 sen per share, a 3.1% growth from RM100.64 million or 5.48 sen per share in the previous corresponding period. Nine-month revenue dropped 8.6% to RM1.23 billion from RM1.35 billion.