LBS looks to better year with Budget perks

PETALING JAYA: LBS Bina Group Bhd expects 2008 to be a “better” year, and is targeting a 20% increase in turnover mainly on improved sales of its homes due to newly-announced buyer incentives, some potential foreign projects as well as higher contributions from its other divisions.

Managing director Datuk Lim Hock San said: “We expect sales next year to be much better than in the current year, given the newly announced incentives under Budget 2008 and increased earnings from the construction and management services divisions.”

“We are targeting RM200mil in sales this year and expect a 20% increase in turnover next year, backed mainly by more aggressive sales of our homes,” he told Starbiz yesterday.


For its financial year ended Dec 31, 2006, LBS made a net profit of RM4.6mil on revenue of RM325.8mil.

Meanwhile, the company is also working on a China deal involving the development of high-end residential and commercial properties.

It expects to seal an agreement with the China government as joint venture partner on the project in about two months. “When it materialises, it would be an exciting development for the company,” an industry observer said.

The project would also be the company’s first overseas property development project.

“Should our foreign project take shape by year-end, 2008 will see a major improvement in our sales,” Lim said.

For the final quarter of the year, LBS will launch 308 units of mixed development properties at its flagship development, Bandar Saujana Putra, 296 units at its Taman Tasik Puchong development, 42 units in Perak and 26 bungalow lots in Cameron Highlands.

The combined value of these projects is some RM186.6mil.

As at June 30, the company had a total land bank of 2,900 acres, mainly in the Klang Valley, with the balance in Pahang (Tanah Rata, Cameron Highlands), Perak (Ipoh and Taiping) and Johor (Batu Pahat).

This would last the company “some six to eight years”, Lim said.