KUALA LUMPUR: LBS Bina Group Bhd is upbeat about a recovery in the property sector for this year in light of the positive economic indicators.

       Executive chairman Tan Sri Lim Hock San said the group is seeing an encouraging pick-up in the property market as the economy recovers.

       Based on data released by Bank Negara, the cumulative total loan applications for property purchases in the first quarter of this year was up 4.06% year-on-year.

       LBS Bina planned to launch 14 projects worth an estimated RM1.77bil across the Klang Valley, Johor, Pahang and Perak this year, Lim said in a statement following the group’s virtual AGM yesterday.

       According to Lim, 2021 was a fruitful year for the group.

       “We hope with our continued focus in our business, together with our consistent dividend payments in line with our dividend policy, our shareholders will continue to put their faith in us.

       “As we navigate through 2022 cautiously in the midst of an economic recovery, we look forward to continuing enhancing stakeholder value as we bring LBS Bina forward.”

       Following the AGM, Lim said all 11 resolutions were passed by its shareholders including the single-tier final dividend of one sen per share for the financial year ended Dec 31, 2021.

       “In addition to LBS Bina’s first interim dividend of 0.85 sen per share which was announced on April 15, the company’s total dividends for 2021 amounted to 1.85 sen per share.”

       The first interim dividend and final dividend will be payable on July 14, and Sept 15, respectively to the shareholders whose names appear in LBS Bina’s record of depositors on June 30, and Aug 30 respectively.

       As at June 15, LBS Bina has recorded property sales of RM816mil, with bookings in the pipeline of RM683mil.

       For its first quarter ended March 31, LBS Bina’s net profit rose to RM30.16mil from RM25.15mil in the previous corresponding period, while revenue improved to RM409.02mil from RM402.55mil a year earlier.In its notes accompanying its first quarter earnings, the company said it recorded strong first quarter performance as sales and construction activities had picked up following the easing of lockdown restrictions.

       “The government’s plan to reopen its borders since April 1 and progressively opening all economic sectors, will provide a positive outlook for the property and tourism sectors,” he said.

       LBS Bina said the property industry is facing a supply chain disruption issue and rising building material costs as well as labour shortage.

       While this will be a challenge for the short term, the group’s investment in the Industrialised Building System or IBS will help to mitigate some of the challenges as it continues to focus on the affordable housing segment, while monitoring thes global and local developments, according to Lim.