This document provides a financial ratio analysis of LBS Bina Group Berhad, a publicly listed Malaysian property developer, for the years 2012-2013. It includes calculations and interpretations of profitability, liquidity, stability, and valuation ratios. The analysis finds that most ratios improved from 2012 to 2013, indicating stronger financial performance. Specifically, return on equity, net profit margin, and gross profit margin all increased significantly. The document also provides background on LBS Bina Group's operations and recent development projects. Finally, it graphs the company's share price against a market index from January to December 2015 to evaluate investment performance.

1. School of Architecture, Building and Design
Foundation in Natural and Built Environment
Basic Accounting (ACC 30205)
Assignment: Financial Ratio Analysis
Company Name : LBS Bina Group Berhad
Lecturer : Ms.Tay Shir Men
Group Members
Carol Tang Ngie Bing (0323963)
Sulaiman Idris (0321087)
Tey Cheng Fern ( 0323912 )
Mohammad Harris Bin Haji Abdul Aziz (0323219)

2. Table of Content
NO. CONTENT PAGE NUMBER
1. History of LBS Bina 3
2. Recent development 7
3. Profitability Ratio 9
4. Stability Ratio 11
5. Price Earning Ratio 12
6. Share Price 13
7. Investment Recommendation 16
8. Appendix 18
9. Reference 29

3. Background History
LBS builds homes that meet the needs of Malaysians. For over
20 years, LBS has carefully nurtured a reputation for delivering
properties with unsurpassed quality that inspire and enrich. By
insisting on continually improving not only construction technologies
but the very latest in architectural trends, LBS lives up to its belief
that Malaysians deserve homes of the finest workmanship.
LBS Bina Group Berhad has been providing golf course
consultation and construction services in Malaysia since 1983. It is a
registered Class A contractor with Pusat Khidmat Kontraktor where
the Company is allowed to plan projects of unlimited value. LBS
began with one man’s vision. In the 1960s, Dato’ Seri Lim Bock Seng
founded a construction business in Petaling Jaya. Within a few years,
LBS’ scale of projects established it as a reputable property
developer. Several of its well publicised accomplishments were
Taman Perindustrian Bukit Serdang Seksyen 14 in Selangor, jointly
developed with the 1992 Thomas Cup champions, Taman Pinggiran
Putra, Serdang and the township project at Bandar Saujana Putra.

4. This trend of growth has seen LBS become a dominant player in
Malaysia’s property sector, and spread its wings across the seas to
China.
Today, the Company has constructed more than 40 golf courses
in Malaysia, Singapore, Brunei, China and Indonesia. The Group also
carries out package design and build projects and has to-date
completed more than 17 design and built golf course projects. In
1994, the Company invested through Lamdeal Holdings Ltd, a 51%
owned subsidiary to construct a 36 hole golf course, a Grand Prix
Circuit, 4,500 units of mixed residential housing and two hotels on
888 acres of prime development land in Zhuhai, China, bordering
Macau.
LBS Bina Group Berhad, formerly known as Instangreen
Corporation Berhad, is a publicly quoted company. Together with its
subsidiaries, the company is engaged in the development of
residential, commercial, and hotel properties. It is also involved in
investment holding, property management, turfing and landscape
contracting, insurance agent, trading of building materials and selling
of membership cards covering personal insurance, property
development. The company was incorporated in 2000 and has its

5. registered head office in Petaling Jaya, Malaysia. Its shares are
listed on Kuala Lumpur Stock Exchange with the ticker symbol 5789.
LBS Bina Group is engaged in a number of projects which
include, Taman Balakong Taya, which comprises more than 2,400
units of shop apartments, apartments, single and double storey
terrace houses, shop houses, light industrial lots and terrace light
industrial factories; and Taman Pinggiran Putra, which has
approximately 190 acres in size.
LBS Bina Group aims to gain recognition as a responsible and
reputable property developer. It has other offices located in Pahang
Darul Makmur, Perak Darul Ridzuan, and Perak Darul Ridzuan, as well
as overseas in Beijing, China.
The Group is affiliated to the ‘Ground Maintenance Association of
America’ which is the technical authority on landscape design,
construction and maintenance. The Group operates one of the turf
farms in Malaysia with more than 100 acres of land planted with
turfgrass of the various popular varieties. In addition, it operates
three landscape nurseries in Mantin, Beranang and Kajang in Malaysia
which comprise a total land area of approx. 90 acres. The acquisition
of SPJ Construction Sdn Bhd in February 1995 has enabled the
Group to diversify into the specialized field of civil engineering. SPJ
Construction is a class ‘A’ civil engineering contractor and has
successfully completed more than RM150m worth of projects. It is

6. presently carrying out projects which are worth more than RM7m.

7. Recent Development
LBS Bina recently gave a media briefing, presented by their
Managing Director, Tan Sri Lim Hock San. LBS Bina's latest offering
in the affordable category. BSP21 is the name of the master
development, and many smaller projects are sccattered across
BSP21. Rumah Selangorku Bandar Saujana Putra is a joint
development between the Selangor government and LBS Bina Group
Berhad.
D'Island Residence is a leasehold development launched in year 2011
located in Puchong. The centrepiece of the development is a huge
lake with plenty of recreational activities prepared for its habitants.
The lake comes landscaped with aquatic features and recreational
facilities. Parks and jogging tracks surrounding the lake, and a
commercial area is in the works as well. Residential units offered in
this development range from condominiums to bungalows, and
everything in between. D'Island is well situated within the rapidly
developing enclave of Puchong, 15 minutes from Kuala Lumpur City
Centre.
Skyvilla is located at the heart of D' Island Residence, Skyvilla is a
17-storey condominium with unit prices. There are a total of two
blocks, and units comes with a built-up range of 1,026 to 1,218 sf.
The development is low density, and units come with 3 bedrooms and
2 bathrooms. Skyvilla is well equipped, and comes with over 30
facilities comprising of gyms, pools, gardens, and playgrounds.
Corallia 4 comprise of the semi-detached units within D'island
Residence. Phase one of Corallia 4 would consist of 86 units of
double-storey semi-detached homes with 14-foot high-volume

8. ceilings. Land size is generous, and measures 40ft x 80ft. Units
come with 5+1 bedrooms, and 6 bathrooms, and approximate built-up
for each of the units is 3,968 sf. Going prices are at RM1.7 million as
of 5/1/2016.
Nautulis is part of D'island Residence, consisting of triple-storey
superlink houses. The architecture and desing is inspired by
Scandinavian elementsThe development is characterized by
picturesque forests, sparkling water enclosures and coastal island
charm. There are two land areas offered in Nautilus, coming in
either 24ft x 100ft, or 24ft x 80ft. Most of Nautilus have been sold
at the time of the event, with only a few units remaining from
unapproved loans.
Desiran Bayu, Puchong is located right next to D' Island Residence,
LBS's premier development located at Puchong. Desiran Bayu is most
notably, built on Malay Reserve Land, e. A total of 598 units are
planned for Desiran Bayu, with unit types ranging from Double-
storey cluster-link, double-storey semi-detached units, and double-
storey terrace. Prices start from RM420,000 for a terrace unit,
RM600,000 for Cluster-link units, and up to RM820,000 for semi-
detached units.
Apart from the residential offerings within Klang Valley, LBS also
has plans for industrial developments. One of them is located in
Telok Gong, Klang. Telok Gong is known as an industrial area among
the locals, and anyone who has been to the area will not use the
words "organized" to describe it. With this problem in mind, LBS has
conceptualized a modern industrial zone with systematic layouts and
incorporated functional design elements into its architecture. The
result is versatile, light industrial workspaces which can be
converted into a logistics hub, a warehouse, or a service centre. The

9. project spans over 60 acres, and a total of 96 units are planned for
the development. Three unit types would be offered, including
Single-storey low cost factory, 1½-storey bungalow factory, and 1½-
storey semi-detached factory. The low cost units are already sold
out, and semi-detached factory units start from RM3.5 million.

10. Profitability Ratio
The following table shows the profitability ratio calculation and
interpretation for LBS Bina in the year of 2012 and 2013.
Profitability Ratios 2012 2013 Interpretation
Return On Equity
Ratio
(ROE)
39,003,430,000
516,690,656,500
x 100 %
=7.5%
397,323,654,000
699,735,858,000
x 100 %
= 56.8 %
The ROE in the year
2013 is higher compared
to the year of 2012. The
ratio has increase from
7.5% to 56.8 %. This
shows that LBS Bina is
earning higher capital in
2013.
Net Profit Margin
Ratio
(NPM)
39,003,430,000
509,644,355,000
x 100 %
= 7.7 %
397,323,654,000
533,532,722,000
x 100 %
= 74.5 %
The increase of NPM in
2013 is a positive sign
and it shows that LBS
Bina kept the expenses
lower than 2012. The
ratio increase from 7.7%
to 74.5%. The higher
NPM gives more profit
to the business. This
prove that the business
is able to control the
expenses than the year
before.
Gross Profit Margin
Ratio (GPM)
19,215,796,000
509,644,355,000
x 100 %
= 3.8 %
168,577,154,000
533,532,722,000
x 100 %
= 31.6 %
The increase ratio of
GPM from 3.8% to 31.6%
in the year 2012 to 2013
shows that LBS Bina is
able to control their
COGS. The higher the
GPM , the better manage
of COGS in the business.

11. General Expenses
Ratio
(GER)
67,470,147,000
509,644,355,000
x 100 %
= 13.2 %
85,596,945,000
533,532,722,000
x 100%
= 16.0%
GER of LBS Bina
increase the ratio of
2012 in 13.2% to 16.0%
in 2013. The higher ratio
in 2013 shows that the
business more likely lead
to a lower NPM.
Financial Expenses
Ratio
(FER)
18,457,247,000
509,644,355,000
x 100 %
=3.6 %
15,170,850,000
509,644,355,000
x 100 %
= 3.0 %
The FER of LBS Bina
decrease from 3.6% to
3.0% during the period
from 2012 to 2013. the
finance expenses spent
in 2013 is lower than
2012. A lower financial
expenses spent in 2013
leads to a higher NPM in
the year 2013.

12. Liquidity Ratio
Liquidity Ratio 2012 2013 Interpretation
Working Capital Ratio
(WCR)
927,829,389 (TCA)
÷ 520,720,661
(TCL)
= 1.8
(1.781817889)
925,492,766 (TCA)
÷ 609,599,483
(TCL)
= 1.5
(1.518198082)
WCR indicates the
company’s short term
assets to cover its short
term debt.
Below value of 1
indicates negative W/C
and above 2 means that
the company is not
investing in excess
assets.
Stability Ratio
Stability
Ratios
2012 2013 Interpretati
on
Total Debt Ratio
(TDR)
Group:
908,176,834 ÷
1,435,008,317
= 0.6328721745 ×
100%
= 63% (63.3%)
Group:
1,137,172,437 ÷
2,009,812,670
= 0.565810164 ×
100%
= 57% (56.6%)
The company’s TDR
decreased from years
2012 from 63% to 57% in
2013. This means that
the company is less
dependent of leverages
such as loans or borrowing
money from other
parties.
Inventory
Turnover Ratio
(ITR)
Group:
13,593,510 (yr.2012) +
17,850,045 (yr.2011)
= 31,443,555 ÷ 2
= 15,721,777.5 (Avg.
Inv.)
363,416,449 (COGS) ÷
15,721,777.5 (Avg.
Inv.)
= 365 ÷ 23.115480994
= 15.8 (15.79028358)
Group:
22, 575, 116
(yr.2013) +
13,593,510 (yr.2012)
= 36,168,626 ÷ 2
= 18,084,313 (Avg.
Inv.)
364,955,568(COGS) ÷
18,084,313 (Avg. Inv.)
= 365 ÷ 20.18078143
= 18.2 (18.23517098)
The company’s TDR
increased from 15.8 in
2012 to 18.2 in 2013.
This ratio shows how
many times the company's
inventory is sold and
replaced over the year.
The increased in ITR may
indicate an increase in
business activity.

13. Interest Coverage
Ratio (ICR)
5,735,301 (Interest
Expense) + 39,003,430
(Net Profit)
= 44,738,731 ÷
5,735,301
= 7.8 (7.800589891)
4,626,563 (Interest
Expense) +
397,323,654 (Net
Profit)
= 401,950,217 ÷
4,626,563
= 86.9 (86.87879469)
ITR shows a company’s
ability cover its debts
expenses. The lower the
ITR more debts the
company has to burden.
Though, as long as the
ratio is above 1.5, the
company’s ability to repay
debts should remain
uncompromised.
P/E Ratio
Group:
Market Value per share of stock = 1.35
(yr.2016.Feb.2nd
)
Earnings per share of stock = 9.70 (yr.2012)
1.35 ÷ 9.70 = 0.14 (0.139175257)
P/E Ratio = 0.14 (0.139175257)
Group:
Market Value per share of stock = 1.35
(yr.2016.Feb.2nd
)
Earnings per share of stock = 96.09 (yr.2013)
1.35 ÷ 96.09 = 0.01 (0.014049328)
P/E Ratio = 0.01 (0.014049328)
Interpretation:
A high P/E generally means that investors are
anticipating growth in the future.
Seeing that the P/E ratio decreased from year
2012 to 2013 may indicate lack of growth in
the future.
Share Price
FTSE BURSA MALAYSIA KLCI(^KLSE)

14. LBS BINA GROUP BERHAD
Based on the graph above, it shows that the share price for
LBS Bina Group Berhad and index for FTSE Bursa Malaysia KLCI.
Before determining whether to invest in either in a company or an
overall market share KLCI, which company has a better percentage
over the time period from January 2015 to December 2015 must be
understand. Hence, 4 different points of time will be viewed to
determine the performance of both graphs.
First point of time, the share price for LBS Bina Group Berhad
is 1.5900 on 23 January 2015, and the index for FTSE Bursa
Malaysia KLCI is 1803.00. At 23 February 2015, the share price

15. decrease to 1.5600 and the index increase to 1809.39. The decrease
of share price is -1.89%, whereas the index changes is 0.35%. This is
to say that the performance of the company is worse than the index.
For the second point, the share price for LBS Bina Group
Berhad is 1.500 on 09 April 2015, and the index for FTSE Bursa
Malaysia KLCI is 1849.39. At 08 May 2015, the share price increase
to 1.6200 and the index decrease to 1807.65. The increase of share
price is 8%%, whereas the index changes is 2.26%. As such, the
performance of the company is better than the index this time.
For the third point, the share price for LBS Bina Group Berhad
is 1.4800 on 06 August 2015, and the index for FTSE Bursa Malaysia
KLCI is 1694.64. At 23 September 2015, the share price increase to
1.5100 and the index decrease to 1613.17. The increase of share
price is 2.03%, whereas the index changes is 4.94%. This is to say
that the performance of the company is worse than the index.
For the final point of the graph, on 17 November 2015 which
the share price is 1. for LBS Bina Group Berhad and the index for
FTSE Bursa Malaysia KLCI is 1661.53. At 28 December 2015, the
share price increase to 1.4100 and the index increase to 1670.73.
The increase of share price is 2.92%, whereas the index changes is
0.554%%. Hence the performance of the company is better than the
index this time.
By comparing LBS Bina Group Berhad with the overall market
share KLCI, LBS Bina Group Berhad is increasing, while FTSE Bursa
Malaysia KLCI is instability. Furthermore, the 4 point of time that
has been calculated shows that LBS Bina Group Berhad is
recommended for investing in.

16. Investment Recommendation
According to LBS bina profitability ratio, the return on equity
(ROE), net profit margin (NPM) and gross profit margin (GPM) has
improved and showed positive signs for the business. The ROE in the
year 2013 is higher compared to the year of 2012. The ratio has
increase from 7.5% to 56.8 %. This shows that LBS Bina is earning
higher capital in 2013. The increase of NPM in 2013 is a positive sign
and it shows that LBS Bina kept the expenses lower than 2012. The
ratio increase from 7.7% to 74.5%. The higher NPM gives more
profit to the business. This prove that the business is able to
control the expenses than the year before. The increase ratio of
GPM from 3.8% to 31.6% in the year 2012 to 2013 shows that LBS
Bina is able to control their COGS. The higher the GPM , the better
manage of COGS in the business. This shows a positive feedback and
is good for investors as this company has an ascending progress for
ROE, NPM and GPM.
As for the liquidity ratio for this company, LBS bina has a ratio
of 1.8 in the year 2012 and 1.5 in 2013. This shows a decrease in
ratio that is bad but not as bad as it is still in between 1.5 and 2.
Since a ratio below 1 is not safe for the company, this means the
company is still safe for it to convert their short term current
assets into money to pay short term current debts. LBS Bina’s
ability to pay off its current liabilities had slightly decreased from
1.8 to 1.5 and has not satisfied the 2:1 ratio of staying within the
borderline of borrowing.
Besides, The company’s Inventory Turnover Ratio(TDR)
decreased from years 2012 from 63% to 57% in 2013. This means
that the company is less dependent of leverages such as loans or

17. borrowing money from other parties. This ensures that the company
will not have as much debts as in 2012 and will effect the company
positively. The company’s TDR increased from 15.8 in 2012 to 18.2 in
2013. This ratio shows how many times the company's inventory is
sold and replaced over the year. The increased in Inventory
Turnover Ratio (ITR) may indicate an increase in business activity.
This as well will ensure that the business will be getting an increase
in business performance. As for the company’s ITR , it has increased
drastically from 7.8 to 86.9. This shows that the company is able to
pay of all their debts expenses. This shows that the safety of the
company is ensured from being bankrupt. The share price for this
business is available at a cheap price at 1.35.
Although the P/E ratio has decreased from 0.14 to 0.01 LBS
Bina is still a good investment for investors. The only downside is
that the decrease in P/E ratio will or may indicate lack of growth in
the future and may increase the time for investor to claim back his
original principal.
However in 2015, the graph from LBS Bina and KLCI shows
that the business, LBS Bina is making profit. On the other hand, the
market, KLCI is also decreasing in profit. As such, LBS Bina is
recommended to invest in now based on the graph from 2015.

18. Appendix
Statements of Financial Position 2012

19. Statements of Financial Position 2012

20. Statements of Financial Position 2012

21. Statements of Financial Position 2012

22. Statements of Comprehensive Income 2012

23. Statements of Comprehensive Income 2012

24. Statements of Financial Position 2013

25. Statements of Financial Position 2013

26. Statements of Comprehensive Income 2013

27. Statements of Comprehensive Income 2013
Share Price Calculation

29. Reference
http://www.lbs.com.my/
http://finance.yahoo.com/echarts?s=%5EKLSE+Interactive#{"range":"1mo",
"allowChartStacking":true
http://finance.yahoo.com/echarts?s=5789.KL+Interactive#{"range":"1mo","
allowChartStacking":true
http://www.lbs.com.my/investor-relations/financial-reports/2012/
http://www.lbs.com.my/investor-relations/financial-reports/2013/
http://listofcompanies.co.in/lbs-bina-group-berhad/
http://www.lbs.com.my/property-collections/latest-launches/
http://www.thesundaily.my/news/1375620
https://www.cloudhax.com/property/news/LBS-Bina,-Plans-for-2016