LBS Bina Shares Lower In Early Trade Despite Higher FY2024 Net Profit

KUALA LUMPUR, Feb 21 (Bernama) -- LBS Bina Group Bhd’s shares on Bursa Malaysia were lower in the early session, despite recording a higher net profit for the financial year ended Dec 31, 2024 (FY2024).

At 11.30 am, the counter shed one sen to 53 sen, with 2.95 million shares changing hands.

In a filing with Bursa Malaysia yesterday, the property developer reported a net profit of RM241.84 million in FY2024, up from RM140.97 million in FY2023, while revenue fell to RM1.43 billion from RM1.80 billion previously, due to lower contributions from property development, construction and trading segments.

Following this, analysts have revised their earnings forecast for the LBS Bina.

In a note today, RHB Investment Bank Bhd has lowered LBS Bina’s FY2025-2026 earnings forecasts by six per cent and eight per cent respectively, citing reduced sales assumptions.

Despite this, the bank maintained a ‘buy’ call with a target price (TP) of 72 sen, representing a 34 per cent upside and a five per cent yield.

“LBS Bina’s FY2024 results were in line with expectations, though earnings were lower due to completed or near-completion projects, along with weaker property sales of RM1.30 billion.

“Nevertheless, the company’s long-term outlook remains strong, with plans to launch new projects worth RM8 billion between 2025 and 2027,” it added.

Similarly, Public Investment Bank Bhd revised its FY2025-2026 earnings forecasts downward by eight per cent to 13 per cent, following adjustments to sales and billing assumptions.

The bank noted that LBS Bina’s fourth-quarter FY2024 net profit came in lower than expected at RM9.60 million, mainly due to an accounting adjustment related to the disposal of the Zhuhai International Circuit (ZIC).

However, the property developer’s headline FY2024 net profit surged 63.5 per cent year-on-year to RM240.20 million, driven by gains from the ZIC disposal, it said in a note today.

“The company’s unbilled sales stood at RM1.68 billion in January 2025, down from RM1.99 billion in FY2023. 

“Despite sales setbacks from project deferments, we have upgraded our call to ‘outperform’ with a TP of 67 sen, a 30 per cent discount to net tangible assets,” the bank added.

-- BERNAMA