Author: PublicInvest | Publish date: Wed, 1 Jun 2016, 10:22 AM
LBS Bina’s (LBS) 1QFY16 revenue of RM200.5m (+53.2% YoY, +5.5% QoQ) and net profit of RM16.9m (+45.8% YoY, -26.7% QoQ) are broadly in line with estimates though only making up 17% of our and consensus full-year estimates. We see subsequent quarters to be stronger, underpinned by its on-going launches and unbilled sales amount which is nearing RM1.2bn year-to-date (YTD). LBS remains primed for sustained growth in the coming few financial years, with its predominant focus on affordably-priced properties standing it in better stead. We reaffirm our Outperform call on LBS with an unchanged target price of RM2.08 based on a 30% discount to its fully-diluted RNAV, the lower discount justifiable in our view given the ability of the Group to easily monetize its land bank in the current market environment, relative to its peers.
RM265m worth of new sales in Q1, with the bulk coming from its flagship Bandar Saujana Putra township and the D’Island development in Puchong. Other contributors for the quarter were Cameron Golden Hills, Bandar Putera Indah, Sinaran Mahkota and Midhills. Despite the seemingly challenging market space, the current quarter’s sales has outpaced that of the previous corresponding period’s RM234m, ample reflection of the Group remaining focused on the customer segment it serves, the mass-market segment, which continues to see steady demand.
RM1.2bn sales target on track. Though YTD sales of RM307m only makes up about 25% of its annual target this year, the Group has lined up various launches for the remainder of the year which should see the goal just about met. For 2016, BSP21 is expected to contribute a further RM450m in sales, Desiran Bayu with RM200m, D’Island with RM100m and D’Island with RM100m, amongst other on-going sales from previous launches.
Healthy earnings visibility. A major plus point for the Group is that its current developable land bank was acquired years ago in which land cost would be undeniably low, giving it the flexibility to alter its product mix to address whatever market cycle. Current unbilled sales of RM1.16bn coupled with its planned launches will underpin earnings visibility for the coming 2-3 years at the very least.
Source: PublicInvest Research - 1 Jun 2016
RM265m worth of new sales in Q1, with the bulk coming from its flagship Bandar Saujana Putra township and the D’Island development in Puchong. Other contributors for the quarter were Cameron Golden Hills, Bandar Putera Indah, Sinaran Mahkota and Midhills. Despite the seemingly challenging market space, the current quarter’s sales has outpaced that of the previous corresponding period’s RM234m, ample reflection of the Group remaining focused on the customer segment it serves, the mass-market segment, which continues to see steady demand.
RM1.2bn sales target on track. Though YTD sales of RM307m only makes up about 25% of its annual target this year, the Group has lined up various launches for the remainder of the year which should see the goal just about met. For 2016, BSP21 is expected to contribute a further RM450m in sales, Desiran Bayu with RM200m, D’Island with RM100m and D’Island with RM100m, amongst other on-going sales from previous launches.
Healthy earnings visibility. A major plus point for the Group is that its current developable land bank was acquired years ago in which land cost would be undeniably low, giving it the flexibility to alter its product mix to address whatever market cycle. Current unbilled sales of RM1.16bn coupled with its planned launches will underpin earnings visibility for the coming 2-3 years at the very least.
Source: PublicInvest Research - 1 Jun 2016
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