LBS Bina targets RM1b sales in 2013

LBS Bina will be launching 15 new projects comprising some 5,000 units this year, with estimated gross development value (GDV) of RM2.3 billion.

KUALA LUMPUR: LBS Bina Group Bhd is targeting to register sales of RM1 billion for 2013 after a good showing last year, despite the global economic uncertainties.

Managing director Datuk Lim Hock San said the target is achievable as Malaysia's gross domestic product is projected to grow five per cent this year.

He is also bullish because the majority of the houses the company plans to launch this year are priced in the affordable range.

The company plans to build about 2,500 units of houses in the medium-high category, worth an estimated RM1.1 billion, and 160 high-end homes with a GDV of RM360 million.

"Some 2,300 units, or 35 per cent of the GDV, will consist of affordable homes. At least 34 per cent of the affordable homes will be priced below RM400,000 each," Lim said.

Lim said the affordable homes would be located mostly in the Klang Valley, Pahang and Johor.

"I am confident that demand for properties in Malaysia will remain strong as prices are competitive. If we have the right product and pricing, then the houses will surely sell," he said.

Last year, the property developer recorded sales of RM871 million, which was 31 per cent more than the RM663 million it achieved in 2011.

On the company's revenue and net profit, Lim expects to do better this year.

"We expect more than 80 per cent of the RM745 million unbilled sales in 2012 to be recognised this year, depending on work done by our contractors," he said at a media briefing yesterday on the company's new direction and strategy for 2013.

LBS Bina's net profit surged 26.9 per cent to RM10.33 million, or 2.7 sen per share, in the third-quarter ended September 30, 2012, on the back of a 22.3 per cent jump in revenue to RM152.91 million.

The stock was up one sen yesterday, closing at 84.5 sen.

Going forward, Lim said LBS Bina will continue to offer quality homes in the medium-cost range.

"This initiative is a testimonial of our role in supporting the government's effort to increase home ownership among Malaysians," he said.

LBS Bina expects to hand over about 2,000 houses this year, which are worth a combined RM1 billion.