KUALA LUMPUR: LBS BINA GROUP BHD [] targets to increase its sales by 54% to RM650 million from RM422 million last year as it shifts towards higher end PROPERTIES [].
Managing director Datuk Lim Hock San said on Friday, July 22 the company hoped to achieve this target following its decision to focus on the high-end property segment which provided better profit margins.
Lim said the group had recorded RM361 million in sales year-to-date. As at June 30, the group had RM558 million in unbilled sales which would be realised in the next two years.
Houses priced above RM350,000 would constitute about 80% of its portfolio, he said after LBS Bina launched its new corporate identity as it aspired to be an internationally recognised developer.
'We are already in the high-end market. Half of the RM361 million sales year-to-date consisted of units sold at RM1 million each, while houses costing between RM350,000 to RM1 million constituted 32% of sales,' said Lim, adding it would still build medium-cost housing units.
The group's projects over 2,400 acres of landbank had a total gross development value (GDV) of RM9.1 billion. It had 19 ongoing projects with a GDV of RM1.45 billion.
Lim said the main contributor for LBS in the next few years would be the 175-acre D'Island Residence project in Puchong, the Bandar Saujana Putra township and projects in Cameron Highlands.
'D'Island Residence would be our flagship project as the group moves into the high-end property segment,' said Lim, adding that the project would contribute 30% to 40% of the group's revenue and earnings in the next few years.
The RM3.5 billion project is located on a 192-ha site in Puchong. LBS Bina plans to build super-link homes, semi-detached units, bungalows, high-end condominiums, clubhouse and a 4-km jogging track.
In the early part of the decade, it was noted for delivering affordable homes with its low and medium cost housing projects.
However, rising material costs began to erode its margins and resulted in LBS Bina posting RM17.18 million losses in the financial year ended Dec 31, 2009 while revenue was RM198.47 million.
Nonetheless, LBS Bina had since recovered and posted net profit of RM17.05 million in FY2010 on the back of RM338.59 million in revenue.
LBS Bina posted RM9.46 million net profit and RM76.46 million in revenue in the first quarter ended March 31, 2011.
Lim added that LBS Bina still intends to develop its project in Zhuhai, China and hoped to launch the project next year.
Managing director Datuk Lim Hock San said on Friday, July 22 the company hoped to achieve this target following its decision to focus on the high-end property segment which provided better profit margins.
Lim said the group had recorded RM361 million in sales year-to-date. As at June 30, the group had RM558 million in unbilled sales which would be realised in the next two years.
Houses priced above RM350,000 would constitute about 80% of its portfolio, he said after LBS Bina launched its new corporate identity as it aspired to be an internationally recognised developer.
'We are already in the high-end market. Half of the RM361 million sales year-to-date consisted of units sold at RM1 million each, while houses costing between RM350,000 to RM1 million constituted 32% of sales,' said Lim, adding it would still build medium-cost housing units.
The group's projects over 2,400 acres of landbank had a total gross development value (GDV) of RM9.1 billion. It had 19 ongoing projects with a GDV of RM1.45 billion.
Lim said the main contributor for LBS in the next few years would be the 175-acre D'Island Residence project in Puchong, the Bandar Saujana Putra township and projects in Cameron Highlands.
'D'Island Residence would be our flagship project as the group moves into the high-end property segment,' said Lim, adding that the project would contribute 30% to 40% of the group's revenue and earnings in the next few years.
The RM3.5 billion project is located on a 192-ha site in Puchong. LBS Bina plans to build super-link homes, semi-detached units, bungalows, high-end condominiums, clubhouse and a 4-km jogging track.
In the early part of the decade, it was noted for delivering affordable homes with its low and medium cost housing projects.
However, rising material costs began to erode its margins and resulted in LBS Bina posting RM17.18 million losses in the financial year ended Dec 31, 2009 while revenue was RM198.47 million.
Nonetheless, LBS Bina had since recovered and posted net profit of RM17.05 million in FY2010 on the back of RM338.59 million in revenue.
LBS Bina posted RM9.46 million net profit and RM76.46 million in revenue in the first quarter ended March 31, 2011.
Lim added that LBS Bina still intends to develop its project in Zhuhai, China and hoped to launch the project next year.
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