LBS Bina posts 9.9pct rise in Q2 revenue despite cautious homebuyers

KUALA LUMPUR: LBS Bina Group Bhd reported a 9.9 percent increase in revenue for the second quarter of financial year 2026, reaching RM340.5 million, despite cautious homebuyer sentiment and cost pressures. Profit after tax and minority interests (PATMI) amounted to RM15.1 million. The company's first half revenue stood at RM637 million with a PATMI of RM32.1 million, driven by progress on projects like LBS Alam Perdana, KITA @ Cybersouth, and Centrum Iris.

Group chairman Tan Sri Dr Lim Hock San acknowledged geopolitical uncertainty and persistent cost pressures, leading to more selective homebuyer decisions. LBS is pacing developments according to market demand and assessing each project based on product positioning, pricing, and timing. The company remains profitable and financially resilient, with a strong sales pipeline, healthy balance sheet, and financial flexibility.

Property development remains the primary revenue contributor, generating RM293.1 million in the quarter, while construction and trading segment revenue surged 439.4 percent to RM41.3 million. LBS maintains a financially strong position with RM591.2 million in deposits and cash, net gearing of 0.35 times, and net assets per share of RM1.10.

The company strengthened its funding position in July by issuing RM150 million of Asean Social SRI Sukuk Wakalah. LBS holds a landbank of 3,899 acres and has RM1.06 billion in unbilled sales, providing earnings visibility for future years. The board declared an interim dividend of 85 sen per share for the financial year ending Dec 31, 2026.