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Friday, June 12, 2009

LBI Capital to launch RM190m projects

PROPERTY developer LBI Capital Bhd plans to launch three projects in the Klang Valley with a total gross development value (GDV) of RM190 million this year.

Its executive director, Kong Sau Kian, said the projects comprised bungalows in Petaling Jaya at RM60 million, industrial lots in Puchong at RM100 million and service apartments in Subang Jaya at RM30 million.

"We are in the midst of getting the necessary approvals from the authorities," he told reporters after the company's annual general meeting in Shah Alam today.

Kong said LBI Capital would continue looking for other projects to maintain a healthy revenue amid the weak economic environment.

"This is expected to be challenging year as the sharp increase in the cost of building materials last year will continue to affect profit margin," he said, adding that other major component costs such as steel remained high and continued to affect the property business.

However, the favourable low interest rate and incentives offered by the government will help the industry to mitigate the adverse impact of the current downturn, according to him.

LBI Capital posted a lower pre-tax of profit RM1.767 million in its first quarter ended March 31, 2009, compared with RM2.064 million in the same quarter last year. Its revenue declined to RM19.017 million from RM19.613 million previously.

The company is now developing four residential projects, with three of them scheduled to be completed by year-end.

On the company's rubber manufacturing division, Kong said the business remained tough as margins continued to be pressured by the rising cost of raw materials and intense price competition.

The division is contributing about five per cent of the company's revenue, he said.

By Bernama

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