PETALING JAYA (May 27): LBS Bina Group Bhd kicked off its financial year ending Dec 31, 2026 with a resilient first-quarter performance, supported mainly by ongoing township developments in the Klang Valley and stronger contributions from its construction and trading businesses.
For the first quarter ended March 31, 2026 (1Q2026), the group recorded revenue of RM296.5 million and profit before tax (PBT) of RM37.7 million. Net profit came in at RM20.6 million, with RM17.0 million attributable to shareholders, translating into earnings per share of 0.90 sen.
Property Development Remains the Main Earnings Pillar
Property development continued to be the group’s largest earnings contributor, accounting for 85% of total revenue during the quarter. The segment generated RM253.0 million in revenue and RM36.2 million in PBT.
LBS said its Klang Valley projects remained the key driver, contributing more than 60% of total group revenue. While earnings were softer year-on-year due to the completion and near-completion of several projects that contributed more significantly in the previous corresponding quarter, the company stressed that demand fundamentals remain intact.
The group noted that ongoing launches across its township developments continue to support earnings visibility and operating cash flow.
Construction and Trading Segment Records Stronger Turnaround
The construction and trading division posted a significantly improved performance in 1Q2026. Revenue surged to RM37.6 million compared to RM9.0 million a year earlier, while PBT improved sharply to RM3.1 million from only RM80,000 previously.
According to LBS, the stronger performance was mainly driven by contributions from a foreign subsidiary as well as cost optimisation measures implemented during the quarter.
Meanwhile, its management and investment activities segment also showed improvement, recording RM0.7 million in revenue and narrowing its loss before tax to RM0.8 million from RM1.8 million in the same quarter last year. The better performance was attributed to higher property management income and a one-off foreign exchange gain arising from the settlement of an intra-group loan.
The “Others” segment — which includes hotel operations, retail mall management, car park management, treasury management, financial services and rental income — posted RM5.2 million in revenue with a reduced loss before tax of RM0.9 million. This compared favourably against a RM1.7 million loss recorded previously, helped by lower loan interest expenses after the settlement of a loan last year.
Balance Sheet Remains Stable
As at March 31, 2026, LBS’ total assets stood at RM4.50 billion, up slightly from RM4.43 billion as at Dec 31, 2025. The increase was mainly due to higher land held for development, larger contract assets and increased project working capital requirements.
Equity attributable to shareholders remained stable at RM1.69 billion, with net assets per share unchanged at RM1.10.
The group’s total borrowings and hire purchase liabilities stood at RM1.30 billion, comprising RM959.9 million in long-term facilities and RM343.8 million in short-term borrowings, together with RM27.5 million in secured bank overdrafts. LBS also maintained RM93.0 million in perpetual Sukuk outstanding during the quarter.
No dividend was declared for the period.
Sales Momentum Supported by New Launches and Landbank
Looking ahead, LBS said it remains cautiously optimistic about navigating the market environment in 2026. The group highlighted that its township and affordable housing products have historically demonstrated resilience across multiple economic downturns, including the Asian Financial Crisis, Global Financial Crisis and Covid-19 pandemic.
As at May 25, 2026, LBS had secured RM395 million in sales with an additional RM302 million in bookings. Key contributors included Centrum Iris in Cameron Highlands, Alam Perdana Industrial Park and KITA Sejati.
The company expects sales momentum to be further supported by upcoming launches such as Idaman Cahaya 3, which carries a gross development value (GDV) of RM117 million, alongside additional residential and commercial projects in the pipeline.
As at April 30, 2026, the group held 3,918 acres of landbank and RM1.1 billion in unbilled sales, providing medium-term earnings visibility.
What We Learn from LBS Bina’s 1Q2026 Results
LBS Bina’s latest quarterly performance highlights several important takeaways about the current property market and the group’s strategic positioning:
Klang Valley developments continue to be the company’s core earnings engine, reinforcing the importance of mature township developments with steady take-up demand.
The strong rebound in construction and trading earnings shows that operational efficiency and diversification beyond pure property development can help cushion softer project cycles.
Despite a more cautious market environment, LBS still maintains healthy sales and booking momentum, particularly in affordable and township-focused developments.
The group’s sizeable landbank of 3,918 acres and RM1.1 billion unbilled sales provide longer-term revenue visibility and future development flexibility.
LBS appears to be balancing growth with financial prudence, maintaining stable net assets while gradually improving losses in its non-core business segments.
Upcoming launches and industrial-related developments may continue to support earnings resilience amid evolving market conditions and construction cost pressures.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 27 May 26
Malaysia