KUALA LUMPUR (Aug 20): LBS Bina Group Bhd’s (KL:LBS) net profit for the quarter ended June 30, 2026 (2QFY2026) fell 44.4%, mainly because the previous year had benefitted from a reversal of contingency sum no longer required for completed projects.

Net profit for 2QFY2026 fell to RM15.05 million from RM27.08 million in 2QFY2025, even as revenue rose 9.9% to RM340.46 million from RM309.84 million.

Profitability for the quarter under review was affected by higher costs and expenses, its bourse filing showed. Topline growth was driven by a jump in revenue in its construction and trading business, offset by a drop in property development contribution.

"The decrease in property development was mainly due to the completion or near completion of certain development projects,” the group noted.

Property development remained its largest revenue driver during the quarter, accounting for 86.1% of total turnover, while construction and trading contributed 12.1%; management and investment, together with others, made up the remaining 1.8%.

For its first half of FY2026 (1HFY2026), net profit dropped 42% to RM32.08 million from RM55.31 million in 1HFY2025, following a drop in property development earnings amid lower billings from mature projects and a higher comparative base. Higher expenses and a higher effective tax rate also weighed on earnings.

Cumulative revenue was little changed at RM636.98 million, compared with RM639.04 million previously.

A first interim dividend of 0.85 sen per share payable on Nov 19 was declared with the latest results, as opposed to none in the previous corresponding period.

LBS Bina said it remains cautiously optimistic about the second half of FY2026 amid elevated global energy prices, as it banks on its historical resilience during economic downturns.

As of Aug 18, the group achieved property sales of RM658.4 million and RM369.7 million of bookings, driven primarily by encouraging demand across key developments, particularly its Alam Perdana Industrial Park in Selangor and Centrum Iris in Pahang.

Unbilled sales stood at RM1.06 billion as of July 31, it added, while the group's landbank totalled 3,899 acres as of Aug 19.

"Further launches are scheduled to be rolled out in the second half of 2026, subject to market conditions," the group said, adding it continues to make steady progress on its premium residential development in Kwasa Damansara, which is expected to provide long-term growth catalyst once the project commences.

The group's shares closed half a sen higher at 43.5 sen on Thursday, valuing the company at RM683.06 million.