LBS Bina’s (LBS) 4QFY22 net profit came in at RM25.6m (-28.9% YoY, -27.0% QoQ) which was in line with our and consensus full year estimates. For FY22, Group net profit of RM126.1m constituted c.98% of our and consensus full year estimates. LBS surpassed its FY22 sales target (of RM1.6bn) by 25% after securing RM2bn in pre-sales, and is eyeing another RM2bn in FY23. Unbilled sales remained healthy at RM2.4bn. All told, no change to our earnings estimates. Reiterate our Outperform call given its attractive investment proposition and entrenched position as a leading player in the domestic mass market affordable housing segment. Target price is unchanged at RM0.67 (60% discount to NTA), at parity to sector mean discount to NTA on account of its ability to monetize its land bank acquisitions/joint ventures quicker than its peers.
- Surpassed FY22 sales target by 25%. LBS clinched RM455m sales in 4QFY22, successfully selling RM2.0bn (vis-à-vis FY22 sales target of RM1.6bn) in 2022. We understand that Klang Valley constituted 90% of the new sales secured, with the remaining 3% from Johor, 5% from Pahang and 2% from Perak. In FY22, LBS launched 10 projects, creating 4,910 units in the Klang Valley, Pahang, Perak, and Johor. Unbilled sales remained steady at RM2.4bn.
- RM2bn sales target in FY23. The Group aims to launch 4,021 units from 12 projects in existing developments in FY23, with 51% of the new properties in the Klang Valley, 23% in Johor, 23% in Pahang, and 3% in Perak. The projects in the Klang Valley are link houses and townhouses within KITA Bestari in Cybersouth, Astella terrace houses at the D’Island Residence in Puchong, and Block B of LBS’ Prestige Residence in Seri Kembangan. Elsewhere, the Group is planning to launch more phases of single-storey terrace houses and cluster link houses in Taman Kinding Flora, Chemor, Perak and the Zenit Molek serviced apartment in Taman Molek, the Imperial Garden double-storey semi-detached apartment, and Emerald Garden single-storey linked houses in Bandar Putera Indah in Batu Pahat, Johor. New projects within the Pahang region include the Bayu Hills serviced apartment in Genting Highlands.
Source: PublicInvest Research - 22 Feb 2023