LBS Bina active, up after CIMB Research rates it a technical Buy

KUALA LUMPUR: LBS BINA GROUP BHD [] shares advanced on Wednesday, July 6 after CIMB Equities Research rated the stock a technical Buy at 88 sen, at which it is trading at a price-to-book value of 0.8 times.

At 11.10am, LBS Bina rose 3.5 sen to 91.5 sen with 7.84 million shares done.

It said on Wednesday, July 6 that prices hit a high of RM0.94 before correction set in. Yet, this does not stop us from staying bullish.

'Looking at the chart, the candles have swung past its minor triangle resistance, signaling that there is still room to the upside,' it said.

CIMB Research said the MACD histogram bars are losing some pace but its signal line remains in the positive territory. Hence, the bulls continue to dominate here. RSI is also above the 50pts neutral mark.

'Risk takers may start to nibble now. A push above RM0.89 would lift prices towards the RM0.94 high again. The following resistances are RM0.98 and RM1.05. Always place a stop at below RM0.825-RM0.81,' it said.

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LBS Bina active, up

KUALA LUMPUR: LBS Bina Bhd shares were actively traded on Wednesday, June 29 after CIMB Equities Research said it saw upside for the stock at 86.5 sen, and that it could soon be back on investors' radar screens.

At 10.40am, LBS was up 4.5 sen to 91 sen with 7.55 million shares done.

CIMB Research said on Wednesday, June 29 that LBS Bina had reinvented itself by switching to wider-margin medium-to high-end products and seizing control of its CONSTRUCTION [] activities.

'This enabled it to return to the black in FY10 and garner over RM500m in unbilled sales, which will help it to meet its ambitious goal of more than doubling its FY04 earnings high in FY13, pushing P/Es down to only 3-4x.

'Also, its expectations for its long-delayed China venture have become more realistic and we would not be surprised if it exited the market if it got a good offer. Assuming a 40% discount to RNAV, which is similar to the discount for smaller developers, LBS would be valued at RM1.88, offering investors 117% upside,' it said

Hua Yang and LBS to benefit from My First Home Scheme, says RHB Research

KUALA LUMPUR: RHB Research Institute expects mass housing developers such as Hua Yang and LBS in the Klang Valley region to benefit from the My First Home Scheme which was officially launched by the Prime Minister on Tuesday, March 8.

The research house said on Wednesday, the scheme would allow first time home buyers with monthly income of less than RM3,000 to obtain 100% financing for houses costing between RM100,000 and RM220,000, with a repayment period of up to 30 years. The Government through Cagamas Berhad will bear the costs of the initial 10% deposit for the house.

Though the scheme was announced in the Budget 2011, RHB Research said the direct beneficiaries will be the mass housing developers such as Hua Yang and LBS in the Klang Valley region, and to some extent such as SP Setia, IJM Land, Mah Sing and KSL'' for their projects in Johor pricing at below RM220,000.

'Overall, we are neutral on this news as this was largely priced in in the property sector,' it said.