LBS upbeat on achieving its 2024 sales target

PETALING JAYA: LBS Bina Group Bhd is cautiously optimistic on its growth prospects for the new year as it unveiled its sale projection for 2024, which has been lowered to RM1.8bil compared to last year after missing the target of RM2bil.

Executive chairman Tan Sri Lim Hock San said this was mainly due to the deferral of its three property project launches in 2023, namely, in Cameron Highlands and Gohtong Jaya in Genting, as well as a development in Puchong, Selangor.

He added that as there was demand for houses in the country and LBS Bina leaned more towards providing a more affordable range for house buyers, optimism remains and the local property developer is confident of its ability of achieving its target.

Additionally, Lim said there were new signs of growth in the property market and it expects improvement.

He said stronger economic growth is widely expected for the country in 2024, adding that there would be continued landbank expansion by other property developers.

“You can see the recent acquisition of land by other developers. It means that they are confident.

“If the market is not good, then there is no point in them buying,” he said during a media briefing yesterday.

Lim added that LBS Bina itself had also acquired land for future development.

“There are many bookings for industrial projects, so we are waiting for approvals.

“Once the approval is out, I think sales will be very strong and that is why we are confident we can achieve our goal,” he said.

As the group anticipates a positive outlook for the property market, Lim said LBS Bina will continue to monitor the market and implement appropriate strategies to ensure its operations are not disrupted.

“The group is motivated to rise to the challenge of delivering developments in strategic locations, while maintaining affordable prices to meet home buyers’ needs and earn trust,” he added.

Lim emphasised that LBS Bina had been introducing projects in 2023 steadily and prudently.

He said after taking into account the state of the economy and market sentiment, the group had to postpone a few launches to 2024.

As a result, its property sales for the financial year ended Dec 31, 2023 fell short of projections, coming in at RM1.70bil.

For the new year, the group is planning to launch 10 new projects with a combined gross development value (GDV) of RM2.33bil.

He stated that within the Klang Valley alone, LBS Bina will concentrate on launching 2,960 units with a total GDV of RM1.14bil.

This is as the region was said to have consistently contributed to the highest sales for the group over the years.

He told the media that the Klang Valley had contributed about 88% of the group’s sales, followed by Johor with 7%, Pahang (3%) and Perak (2%).

“This year, we expect Pahang to contribute more,” Lim said.

LBS Bina is also actively engaged in 19 ongoing projects, with an estimated GDV of RM5bil, collectively.

As of financial year 2023, the group had a total land bank spanning 2,767 acres, with unbilled sales totalling about RM1.99bil, which Lim believes will ensure a clear and robust earnings outlook for the next two to three years.

Out of the 2,767 acres of land bank, Lim said a substantial amount is expected to keep the group occupied for the next 10 to 15 years.

It was also revealed that the amount of vacant possession delivered for 2023 went up by 65% from 2,957 units to 4,872 units, equivalent to RM2.4bil.

Hence, for 2024, Lim said LBS Bina expects the amount to drop to 4,408 units.

“So, we are going to hand over 4,408 units this year,” he said.

According to Lim, LBS Bina will be launching six Rumah Idaman MBI projects, totalling 7,416 units and a GDV of RM2.12bil, in partnership with its construction arm, MGB Bhd.

As of Dec 31, 2023, MGB had an outstanding construction order book valued at RM1.14bil, which included 17 projects in total.

Of these, 10 were included in the construction order book, with the Rumah Idaman MBI projects coming in second at six, and one pocket land development.

On a separate note, Lim said the group remains steadfastly focused on its environmental, social and governance (ESG) initiatives, considering it to be a pivotal priority.

He stated that the group will continue to seek opportunities to further enhance its ESG profile, all while aligning with the objective of achieving net-zero carbon emissions by 2050.