KUALA LUMPUR (Aug 21): LBS Bina Bhd’s net profit fell 6.02% to RM33.01 million in the second quarter ended June 30, 2023 (2QFY2023), from RM35.13 million a year ago, due to lower contribution from its property development segment.

Hence, earnings per share fell to 2.14 sen per share in 2QFY2023 from 2.25 sen per share previously, the property developer’s bourse filing showed on Monday (Aug 21).

Quarterly revenue declined by 8.52% to RM375.39 million, from RM410.37 million a year earlier.

Its property segment, which contributed 88% to the group’s revenue, saw its profit before tax (PBT) decline by 36% to RM43.36 million in 2QFY2023, from RM68.24 million previously. The segment’s revenue also fell 9% to RM358.14 million, from RM391.99 million previously.

It attributed the decrease in revenue and PBT to certain development projects that were near their completion before vacant possession.

For the cumulative six months of FY2023, its net profit dropped marginally by 2.16% to RM63.51 million, from RM65.29 million, as revenue shrank 7.22% to RM760.25 million, from RM819.39 million previously.

The group said it has secured RM1.1 billion in new property sales, with bookings in the pipeline amounting to RM364.1 million as of Monday. The group remains vigilant and nimble to push towards its 2023 sales target of RM2 billion.

In the second half of the year, the group said it will complete and handover eight projects to new homeowners, which is expected to boost the group’s cash position and profitability.

Its unbilled sales stood at RM2.5 billion as at July 31, 2023, which continues to provide earnings visibility to the group.  

Shares in LBS Bina closed up 0.5 sen or 0.93% to 54 sen on Monday, giving the group a market capitalisation of RM847 million.

Year to date, the stock recorded an impressive gain of 29%, from 42 sen on Dec 30, 2022.