Lbs Bina Group Berhad

$LBS / 5789 (LBS BINA GROUP BERHAD)
Research by RHB

KUALA LUMPUR: LBS Bina Group Berhad, a leading property developer with a people-first philosophy, has earned the esteemed Top of the Chart award at the Malaysia Developer Awards 2024 (MDA).

© New Straits Times Press (M) Bhd

LBS Bina Group Bhd (LBS) officially launched a 315-acre premier development located in Genting Highlands, Pahang on Oct 15.

KUALA LUMPUR: LBS Bina Group Bhd wants the 2025 Budget to prioritise home ownership, innovative construction and green financing to shape Malaysia’s real estate future.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: MGB Bhd, 57.98 per cent owned by LBS Bina Group Bhd, is set to undertake mixed development and residential projects in Taman Bukit Serdang, Seri Kembangan, with a combined gross development value (GDV) of RM861.35 million.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Stocks to watch on Thursday include Kumpulan Kitacon Bhd, Tropicana Corp Bhd, LBS Bina Group Bhd, Key Asic Bhd, Guan Chong Bhd and Skyworld Development Bhd.

A consortium led by property developer LBS Bina Group Bhd has awarded a RM104mil engineering, procurement, construction and commissioning (EPCC) contract to regional clean energy expert Solarvest Holdings Bhd to construct a 43 megawatt-peak (MWp) solar farm project.

KUALA LUMPUR: A consortium led by LBS Bina Group Berhad has awarded Solarvest Holdings Berhad a RM104 million contract for engineering, procurement, construction, and commissioning (EPCC) to build a 43-MWp solar farm in Senawang, Negeri Sembilan. 

© New Straits Times Press (M) Bhd

KUALA LUMPUR: LBS Bina Group Bhd's indirect subsidiary Suria Hijauan Sdn Bhd has awarded an engineering, procurement, construction and commissioning (EPCC) contract to Atlantic Blue Sdn Bhd, a unit of Solarvest Holdings Bhd, to construct a 43MWP solar farm in Senawang, Negeri Sembilan, for RM104mil.

KUALA LUMPUR: LBS Bina Group Berhad has announced a strategic collaboration with RHB Banking Group to introduce green financing for SkyRia @ D’Island Residence Puchong in Selangor.

© New Straits Times Press (M) Bhd

$LBS / 5789 (LBS BINA GROUP BERHAD)
Research by RHB
Neutral - TP RM0.72

"Slower Pace Of Property Sales"

Maintain NEUTRAL, new MYR0.72 TP from MYR0.93, 7% upside. LBS Bina’s 2Q24 results met expectations, with improved revenue following an increase in on-site development activities. We are cautious on the group missing its MYR1.8bn sales target as 1H24 sales only reached MYR559m. We raise our discount to RNAV to 65% from 55% as we highlight the potential cancellation of the Johor LRT project, given the lack of progress.

Analysts:
Wan Muhammad Ammar Affan
ammaraffan@rhbgroup.com
Loong Kok Wen CFA
loong.kok.wen@rhbgroup.com

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - TAN SRI DATO' SRI IR. (DR.) LIM HOCK SAN, JP

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - TAN SRI DATO' SRI IR. (DR.) LIM HOCK SAN, JP

Immediate Announcement on Shares Buy Back

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)

$MGB / 7595 (MGB BERHAD) - Coming off of a Record High Year, Management is still confident

I have been writing on MGB for slightly under a year now, when their precast plant had just begun to reach economies of scale and they started a JV with KSA to operate another huge precast plant in Saudi Arabia. You can read my initial writeup here, and see how the company had progressed over the year: https://cutt.ly/bek24KB3

If you scroll back on the MGB page here on Stockbit you'll be able to see all the other posts I've written too.

Anyhow...

MGB had been aiming to break the RM 1 bil milestone, but fell slightly short last year in spite of ending the year with a record high RM 917mil revenue and a record high RM 48.7mil profit after tax.

This year, the management seems confident and optimistic about their prospects, and there's good reason to believe they will try again to break that wall and stand a good chance at doing so this time.

As usual, this is just my own personal writing for knowledge and information sharing only. Please do your own further due research before making any investment decisions, and as usual execution risk is always there.

With that out of the way, let's just go through a few highlights in their near term (~ 1-2 years) prospects:

1) They have finally secured the first international order to supply precast concrete parts for 400 villas in Northern Jeddah. This is a good start and if they can execute this well, there should be ample market to tap into here.

2) They have an existing construction orderbook of RM 1.38bil to be progressively recognized over the next 2 years.

3) Their property development arm also has unbilled sales of RM 750m still yet to be recognized from their ongoing projects.

4) As usual, they continue to secure related party contracts from their parent company $LBS / 5789 (LBS BINA GROUP BERHAD), which I mentioned before is not necessarily a bad thing for the construction industry. If you read LBS' commentaries from their QR, you would know that LBS is aggressively planning new project launches across Selangor and Johor to the tune of close to RM 2.3bil in GDV. This bodes well for MGB as they stand a good chance to be selected for many of these construction projects.

5) Of course, MGB also secures projects from other parties including the Selangor Gov arm to build affordable housing, making good use of their precast capabilities. If you've gone to KLIA recently, you can actually see one of MGB's projects just recently completed along the way. With affordable housing still on top of the agenda for the Government, I believe more launches could also be on the way.

All in all, MGB has been walking the talk so far, and continue to also pay out increasing dividends alongside their improved performance. While I still remain cautious of their huge amount of goodwill in the books, operationally the company has been doing well and there's nothing to complain about.

PROVISION OF FINANCIAL ASSISTANCE

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - TAN SRI DATO' SRI IR. (DR.) LIM HOCK SAN, JP

Changes in Director's Interest (Section 219 of CA 2016) - TAN SRI DATO' SRI IR. (DR.) LIM HOCK SAN, JP

KUALA LUMPUR: LBS Bina Group Bhd, a developer guided by people-first values, has been awarded the 2024 “World Sustainable Property Icon Leadership Lifetime Achievement Award”.

© New Straits Times Press (M) Bhd

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSLBS BINA GROUP BERHAD ("LBGB")

EQUITY TRANSFER AND DEBT REPAYMENT AGREEMENT BETWEEN DRAGON HILL CORPORATION LIMITED AND HUAFA URBAN OPERATION (HK) LIMITED

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - TAN SRI DATO' SRI IR. (DR.) LIM HOCK SAN, JP

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)

Changes in Director's Interest (Section 219 of CA 2016) - TAN SRI DATO' SRI IR. (DR.) LIM HOCK SAN, JP

$LBS / 5789 (LBS BINA GROUP BERHAD)

$LBS / 5789 (LBS BINA GROUP BERHAD)
Research by RHB
Neural – TP of MYR 0.93

“Finally Monetising ZIC; D/G To NEUTRAL”

Downgrade to NEUTRAL from Buy, with new MYR0.93 TP from MYR0.82, 5% upside. We are positive on LBS Bina’s proposed disposal of its entire equity interest in Lamdeal Investments Ltd (LIL) for MYR124.7m, which owns a 60% stake in Zhuhai International Circuit (ZIC). That said, we downgrade our call as we think the positives are largely priced in and upside is limited following the recent strong share price performance.

Analyst(s):
Wan Muhammad Ammar Affan
ammaraffan@rhbgroup.com
Loong Kok Wen CFA
loong.kok.wen@rhbgroup.com