KUALA LUMPUR: LBS Bina Group Bhd said its first financial quarter was "encouraging" with a pick-up in sales and construction activities following the easing of lockdown measures.
To date, the real-estate group's sales stand at RM593mil, with bookings of RM561mil in the pipeline and unbilled sales of RM2.4bil, it said in a filing with Bursa Malaysia.
For the quarter ended March 31, 2022, the property developer registered a net profit of RM30.16mil, a 19.9% increase over a net profit of RM25.15mil in the previous corresponding quarter.
The group said revenue came to RM409.02mil in the quarter under review, which was 1.6% higher year-on-year (y-o-y).
Earnings per share was 1.45 sen compared with 1.33 sen in the comparative quarter.
According to the group, the government's reopening of borders on April 1, 2022, and plan to progressively reopen all economic sectors provide a positive outlook for the property and tourism sectors, and will drive the market to regain momentum.
"The affordable housing segment continue to be in demand and will benefit from the government’s stamp duty waiver for Malaysian citizens buying their first residential property valued up to RM500,000 for sales and purchase agreements executed between 1 January 2021 to 31 December 2025," it said.
However, it noted that the supply chain disruption and rising building material costs and labour shortages remains a challenge for the short-term, although the group's investment in IBS Precast System will help to mitigate some of these challenges.
By segment, the group reported a slightly higher revenue in the property development segment but registered a 5% decline in pre-tax profit to RM51.99mil due to a decrease in interest income and increase in operating expenses.
In the construction and trading business, the group posted 16% y-o-y decline in pre-tax profit to RM10.96mil due to the rising cost of building materials.
Meanwhile, the group narrowed its losses in its management and investments, motor racing circuit and hotel segments.