KUALA LUMPUR (May 31): LBS Bina Bhd’s net profit for the first quarter ended March 31, 2019 (1QFY19) declined 23.26% to RM17.68 million from RM23.04 million a year ago, despite higher revenue, due to lower income from its construction and trading, as well as its property management and investment segments.

In a bourse filing, the group said quarterly revenue increased 36% to RM326.56 million, from RM240.12 million in 1QFY18.

Earnings per share (EPS) for the quarter declined to 1.13 sen, from 2.26 sen last year.

For its property development segment, profit before tax increased 34% to RM31.34 million in 1QFY19, from RM23.13 million posted last year. Meanwhile, segmental revenue increased 37% to RM265.25 million.

The group attributed the segment’s increased PBT and revenue to Bandar Saujana Putra, Desiran Bayu, LBS Alam Perdana, D’ Island Residence, Zenopy Residences, Cameron Golden Hills, Midhills, Bandar Putera Indah, Residensi Bintang Bukit Jalil, Cameron Centrum and Kita @ Cybersouth — while noting its Klang Valley projects contributed 70% to overall group revenue for 1QFY19.

Meanwhile, its construction and trading segment saw PBT decrease by 65% to RM5 million, from RM13 million a year earlier (1QFY18).

Quarterly segmental revenue increased by 16% to RM183.71 million, from RM158.63 million.

The group attributed the lower quarterly segmental profit to a narrow profit margin from ongoing construction projects, as well as loss made by a subsidiary company, and higher depreciation and finance costs.

On the other hand, revenue increased due to in-house projects.

For its management, investment and others segment, the group posted a lower profit before tax of RM3 million in 1QFY19, down to a third of RM9 million achieved last year, with revenue more than doubling to RM18 million, from RM7 million a year prior.

The decrease in quarterly revenue for the segment was due to higher depreciation and finance costs and negative goodwill from the acquisition of a subsidiary company in 1QFY18. Meanwhile, revenue increased on the back of intra-group project management fees.

Meanwhile, its Motor Racing Circuit segment continued to be in the red, slightly widening its loss before tax (LBT) to RM2.19 million from RM2 million in 1QFY18, with revenue decreasing to RM5 million from RM6 million last year.

The group attributed its lower revenue to less income derived from corporate day events.

On its prospects, the group said property development is a key driver of its business operations and has more than 4,000 acres as part of its total land bank.

“Whilst the prospects for the property industry remains challenging due to global and regional headwinds, the group’s prospects moving forward remain positive, with total property sales-to-date of RM528 million and total unbilled sales of RM1.70 billion as at April 30, 2019, which are well supported by 18 ongoing projects and a total land bank of more than 4,000 acres,” the group said.

The counter traded 0.97% or half a sen higher to 52 sen today, with 826,200 shares traded, giving it a market capitalisation of RM810.88 million.