LBS Bina Group Bhd is a property development and investment holding company in Malaysia. It operates through five major segments: property development, management and investment, trading and others, construction, and racing circuit. The document analyzes LBS Bina Group's financial ratios from 2012-2013 which show improving profitability, adequate liquidity but high debt levels. It also examines the company's share price performance relative to the KLCI stock index from January to December 2015, finding mixed results of outperforming and underperforming the market at different times.
The Muthoot Group is an 127-year-old business house based in India. It has interests in Financial Services, Information Technology, Media, Healthcare, Education, Power Generation, Infrastructure, Plantations, Precious metal, Tourism, and Hospitality. The Muthoot Group operates in 23 states in India, and has presence in USA, UK and UAE. It is wholly owned and managed by the Muthoot Family.
The Muthoot Group is an 127-year-old business house based in India. It has interests in Financial Services, Information Technology, Media, Healthcare, Education, Power Generation, Infrastructure, Plantations, Precious metal, Tourism, and Hospitality. The Muthoot Group operates in 23 states in India, and has presence in USA, UK and UAE. It is wholly owned and managed by the Muthoot Family.
1282019 Unit 7 Assignment - MT140 Introduction to Management.docxdrennanmicah
1/28/2019 Unit 7 Assignment - MT140 Introduction to Management
https://purdueglobal.brightspace.com/d2l/le/content/76155/viewContent/6507023/View 1/2
This assignment consists of reading the following business
management scenario and composing a paper regarding
the use of teamwork to resolve a management problem.
This Assignment will be used to assess the following
Course Outcome MT140-1: Describe solutions to
management problems.
You are an owner and executive level manager of a
business with eight locations. Your strategic goal is to
expand this business over the next 5 years. While you are
pleased with the past performance of the business overall,
you have spent a great deal of time over the previous
months visiting the eight locations and addressing issues
and concerns of the various employees and location
managers. It has become obvious to you that you are
unable to devote the time and energy necessary to focus on
necessary executive level activities to take the business to
the next level. All of your time seems to be spent addressing
small problems within the existing locations. You have heard
that other businesses have successfully used a team
approach to management with good results. You have
decided to examine this option for your business, managers,
and employees.
After reading the scenario above and the section on self-
managed teams in your assigned textbook readings,
compose a paper in which you explain the difference
between traditional and team working environments. Then
explain how effective self-managed teams could be built
and successfully implemented within your business. Finally,
describe how these teams could contribute to the overall
effectiveness of your business.
Minimum Submission Requirements:
Your Assessment paper should be at least 2 full double-
spaced pages in length, using size 12-point font in
Assignment Details
1/28/2019 Unit 7 Assignment - MT140 Introduction to Management
https://purdueglobal.brightspace.com/d2l/le/content/76155/viewContent/6507023/View 2/2
spaced pages e gt , us g s e po t o t
Microsoft® Word®.
Be sure your paper is well written in paragraph form, with
correct spelling grammar and punctuation
Instructions:
· This is a group assignment with only 4 members. As discussed and explained in the class, this assignment is a Case study.
· The students should read and analyze the Case study and submit their report.
· The report should contain the following:
The Assignment should cover the following points:
1. Brief Overview (Describe the Company and issues discussed)
1. Situation Analysis (SWOT)
SMU Classification: Restricted
SMU366
CITY DEVELOPMENTS LIMITED: A JOURNEY IN SUSTAINABLE
BUSINESS DEVELOPMENT
Companies with sustainability in their DNA are more resilient and make a better business
model for success and long term growth. In the mid-1990s, building sector was seen as
‘destroying before constructing’, CDL as a pioneering de.
City Developments Limited a journeyin sustainable business VinaOconner450
City Developments Limited: a journey
in sustainable business development
Hwang Soo Chiat and Havovi Joshi
Hwang Soo Chiat is an
Associate Professor based
at the School of
Accountancy,
Singapore Management
University, Singapore.
Havovi Joshi is Head of the
Communications &
Dissemination Centre for
Management Practice,
Singapore Management
University, Singapore.
Companies with sustainability in their DNA are more resilient and make a better business model
for success and long term growth. In the mid-1990s, building sector was seen as “destroying
before constructing”, CDL as a pioneering developer was determined to change this perception
and committed to transforming our business strategy to one that “conserves as we construct” for
long term sustainability. From design, construction, procurement, maintenance and even user
engagement, the entire cycle has been aligned with environmental sustainability in mind – Kwek
Leng Joo, Managing Director, CDL[1].
It was January 2013, and Esther An, Head of Corporate Social Responsibility (CSR) and
General Manager (Corporate Affairs) of City Developments Limited (CDL), was busy in
meetings with the members of her CSR Committee, planning key strategies for CDL’s
proposed sustainability framework for the coming year. CDL was one of Singapore’s leading
international property and hotel conglomerates, involved in real estate development and
investment, hotel ownership and management, facilities management and the provision of
hospitality solutions. The group had developed over 22,000 luxurious and quality homes in
Singapore, catering to a wide range of market segments. In addition, its London-listed
subsidiary Millennium & Copthorne Hotels plc (M&C) owned and managed over 100 hotels
spanning 70 locations in 19 countries.
CDL was widely recognised as a champion of sustainable practices in Singapore. It was the
first company to be honoured with the President’s Social Service Award and President’s Award
for the Environment in 2007. It was also the only developer to be accorded the Built
Environment Leadership Platinum Award in 2009 and Green Mark Platinum Champion Award
in 2011 by the Building and Construction Authority (BCA), the governing authority for
Singapore’s built environment. CDL was the first Singaporean company to be listed on all three
of the world’s top sustainability benchmarks – FTSE4Good Index Series since 2002, Global
100 Most Sustainable Corporations in the World since 2010 and the Dow Jones Sustainability
Indexes since 2011. It was a founding member of Singapore Compact for CSR, and one of the
pioneer Singapore signatories of the United Nations Global Compact to lend support to the
advancement of responsible corporate citizenship in Singaporean industry.
How could CDL reinforce the culture of sustainability that it prided itself on? What could it do
to increase awareness of their sustainability vision in the stakeholders? How would they
influence stakeholders to adopt sustainability best pra ...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
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Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
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The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
1. Basic Accounting (ACC30205)
Assignment: Financial Ratio Analysis
FNBE MARCH 2015
Group Members: Adele Lu Khai Syn (0323151)
Kenneth Tan Sin Kwang (0322482)
Ng Sheng Zhe (0323830)
Goh Jia Jun (0323302)
Lecturer: Ms. Tay Shir Men
2. Page 2
Contents Page
Background Study 3
Recent Development 4
Profitability 5
Liquidity 6
Stability 6
P/E Ratio 7
Report 8-9
Investment Recommendation 10
Appendix 11-19
References 20
3. Page 3
BACKGROUND STUDY
LBS Bina Group Bhd. is a management and investment holding company in Malaysia,
which engages in the property development business. It is formerly known as Instangreen
Corporation Berhad and its date of incorporation is on 29 June 2000. It made its debut on
the Main Board of the Kuala Lumpur Stock Exchange (KLSE), known as Bursa Malaysia on 30
January 2002. The company provides management services to its subsidiary companies.
The company is founded by Dato’ Seri Lim Bock Seng on June 29, 2000 and is
headquartered in Petaling Jaya, Malaysia. He is assisted by his 5 children who are Tan Sri Lim
Hock San, Datuk Wira Lim Hock Guan, Dato’ Sri Lim Hock Sing, Datuk Lim Hock Seong and
Ms Lim Mooi Pang to expand his business. Tan Sri Lim Hock San is now currently the
managing director of the company and the other 4 siblings are the executive directors of the
company. LBS Bina Group Bhd’s activities include residential and commercial development,
management, trading, insurance, tourism, construction, racing circuit.
The company operates through 5 major segments, namely the Property
Development, Management & Investment, Trading & Others, Construction, and Racing
Circuit. The Property Development segment involves development of residential, industrial
and commercial properties. The Management and Investment segment involves investment
holding and provision of management services. The Trading and Others segment involves
trading in building material, insurance agent, selling of insurance membership cards and
tourism development. The Construction segment involves building, project planning and
implementation contractor. The Racing Circuit segment involves motor racing circuit
development and management. Other business segments include selling of membership
cards covering personal insurance and insurance agent.
The company has fully owned subsidiaries and non-fully owned subsidiaries. The
example of fully owned subsidiaries are Intel place Holdings Limited, Linkway Property Co.
Ltd, LBS Landscape Sdn Bhd, LBS Bina Holdings Sdn Bhd, Maju Kepunyaan Sdn Bhd, Saga
Serata Sdn Bhd, SPJ Construction Sdn Bhd and more. The example of non-fully owned
subsidiaries are ML Global Berhad, Zhuhai International Circuit Limited, Sepadan Maju Sdn
Bhd, Johan Anggun Sdn Bhd, Iringan Kejora Sdn Bhd, Pembangunan Primer Sdn Bhd, Prima
Utuh Sdn Bhd and more.
4. Page 4
RECENT DEVELOPMENT
One of LBS Bina Group Bhd residential projects is the D' Island Residence. It is a township
surrounded by the scenic lakes of Puchong. The concept of D' Island Residence is to build luxury
houses nestled amidst lush blooms and natural flora with complete serenity and security. The
residence is launched at 2011 and it is as huge as 175 acres. It features landscaped lake with aquatic
features, parks and jogging tracks and lakeside recreational facilities. The residence has several types
of houses such as 2 Storey Semi-Detached Home, Bungalow lots, Three-Storey Superlink and Three-
Storey Semi-D. The cheapest houses which are the 2 Storey Semi-Detached Home cost from RM1.5
million onwards with the Three-Storey Semi-D as the most expensive houses which cost for RM2.4
million onwards. Besides, D' Island residence is estimated to have tenure of five to seven years with
total Gross Development Value of RM3 billion. In addition, phases launched in the 2012 are closed
strongly with sale value of RM43.5 million. The residence also gained many awards such as the “Best
Urban Scenic Development” by the Malaysian Reserve and “Highly Commended: Development
MarketingMalaysia”duringthe AsiaPacificPropertyAwards2013.
LBS Bina Group Bhd will also be launching a new project called the Telok Gong Industrial Park in the
future. It is one of the master-planned industrial park in Telok Gong, Klang. The project types are 1 ½
Storey Semi Detached Factory, 1 ½ Storey Bungalow Factory and Single Storey Low cost factory. The
size of the project is 60.92 acres and it has a total of 96 units of buildings. The industrial park is
conceptualized as modern industrial zone with systematic layout and practical design of factory.
Furthermore, it will features organised site with proper access, attractive modern façade design
which enhance corporate image, multifunction design for factory, warehouse, showroom and office,
private security guard house, roller shuttle and gate and purpose built for fully function as industrial
building.
5. Page 5
PROFITABILITY
ProfitabilityRatios 2012 2013 Interpretation
ReturnOn Equity
(ROE)
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑂/𝐸
× 100%
39,003,430
516,690,656.5
× 100% = 7.55%
397,323,654
699,735,858
× 100%
= 56.78%
Duringthe periodof
2012-2013, ROE has
increasedfrom 7.55% to
56.78%. Thismeansthat
LBS is gettingmore
returnfrom the capital
in2013 comparedto
2012.
NetProfitMargin Ratio
(NPM)
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
39,003,430
509,644,355
× 100%
= 7.65%
397,323,654
533,532,722
× 100%
= 74.47%
Duringthe periodof
2012-2013, NPMhas
increasedfrom7.65% to
74.47%. Thismeansthat
LBS is betterathandling
theirexpensesin2013
comparedto 2012.
Gross ProfitMarginRatio
(GPM)
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
146,227,906
509,644,355
× 100%
= 28.69%
168,577,154
533,532,722
× 100%
= 31.6%
Duringthe periodof
2012-2013, GPM has
increasedfrom28.69%
to 31.6%. This means
that LBS is gettingbetter
at controllingtheircost
of goodssold(COGS).
SellingExpensesRatio(SER)
𝑇𝑜𝑡𝑎𝑙 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
General ExpensesRatio
(GER)
𝑇𝑜𝑡𝑎𝑙 𝐺𝑒𝑛𝑒𝑟𝑎𝑙 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
67,470,147
509,644,355
× 100%
= 13.24%
85,596,945
533,532,722
× 100%
= 16.04%
Duringthe periodof
2012-2013, GER has
increasedslightlyfrom
13.24% to16.04% This
meansthat LBS isnot
gettingbetterat
controllingtheirgeneral
expenses.
Financial ExpensesRatio
(FER)
𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝐸𝑥𝑝𝑒𝑛𝑠𝑒
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
× 100%
18,457,247
533,532,722
× 100%
= 3.62%
15,170,850
509,644,355
× 100%
= 2.84%
Duringthe periodof
2012-2013, FER has
decreasedfrom3.62%
to 2.84%. This means
that LBS is gettingbetter
inmanagingthe
financial expense.
6. Page 6
LIQUIDITY
LiquidityRatio 2012 2013 Interpretation
WorkingCapital Ratio
(WCR)
𝑇𝑜𝑡𝑎𝑙 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡
𝑇𝑜𝑡𝑎𝑙 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 927,829,389
520,720,661
= 1.78:1
925,492,766
609,599,485
= 1.52:1
Duringthe 2012-2013
period,the WCRhas
decreased from1.78:1
to 1.52:1. This means
that the business’
abilitytopaycurrent
liabilitieswithcurrent
assetsis not getting
better.However,it
will experience
difficultyinrepaying
itscurrent liabilities
because itdoesnot
have minimumof
WCR 2:1.
STABILITY
StabilityRatios 2012 2013 Interpretation
Total DebtRatio
(TDR)
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
× 100%
908,176,834
1,435,008,317
× 100%
= 63.29%
1,137,172,437
2,009812670
× 100%
= 56.58%
Duringthe 2012-2013
period,the TDR has
decreasedfrom
63.29% to 56.58%.
Thismeansthat the
business’total debts
has reduced. Butitstill
exceed50%,itis
considered highriskof
goingbankrupt.
InventoryTurnoverRatio
(ITR)
365 ÷
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
365÷
363,416,449
15,721,777.5
= 15.79 𝐷𝑎𝑦𝑠
365 ÷
364,955,568
18,084,313
= 18.1 𝐷𝑎𝑦𝑠
Duringthe 2012-2013
period,the ITRhas
increased from15.79
daysto 18.1 days.This
meansthat the
businessissellingtheir
goodsat a slowerrate.
InterestCoverage Ratio
(ICR)
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 + 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒
18,457,247 + 39,003,430
18,457,247
= 3.1 𝑇𝑖𝑚𝑒𝑠
397,323,654 + 15,170,850
15,170,850
= 27.19 𝑇𝑖𝑚𝑒𝑠
Duringthe year 2012-
2013 period,the ICR
has increased from3.1
timesto27.19 times.
In 2013, the business
has enoughprofitsto
pay itsinterest
expenses27.19 times.
7. Page 7
P/E RATIO
LBS Bina Group in 2012 is RM0.84 per share. It’s earning per share is RM 0.097. This means
that the ratio of price-to-earning of this company is RM0.84 divided by RM 0.097
P/E 𝑅𝑎𝑡𝑖𝑜 =
0.84
0.097
= 8.66
LBS Bina Group in 2013 is RM1.56 per share. It’s earning per share is RM 0.96. This means
that the ratio of price-to-earning of this company is RM1.56 divided by RM 0.96
P/E 𝑅𝑎𝑡𝑖𝑜 =
1.56
0.96
= 1.625
The P/E ratio measures how expensive a share is. In the year 2012, the P/E ratio is 8.66
which mean the inventor needed to wait for 8.66 years to recoup their investment. In the
year 2013, the P/E ratio is 1.625 which means the inventor needed to wait for 1.625 years to
recoup their investment. Therefore the return of LBS Bina Group in 2012 is shorter than
2013. As a conclusion, it’s recommended to invest LBS Bina Group as it is a highly potential
company.
8. Page 8
REPORT
Based on the graph above is the stock graph of LBS Bina Bhd and KLCI on 1st Jan 2015 to 31st
December 2015 from Yahoo Finance.
The share price of LBS Bina Bhd on 17th April 2015 is RM1.50, it decreased to RM1.68 on
19th May 2015 which decreased by (
1.68−1.50
1.50
= 0.12%). While the index is RM 1845.86 on
17th April 2015 and increased to RM1809.72 (
1809.72 −1845 .86
1845.86
= -0.0196%) on 19th May 2015.
Hence, the performance of LBS Bina Berhad is better than the index.
The share price of LBS Bina Bhd on 5t Jun 2015 is RM 1.64, which increased to RM1.60 on
7th July 2015 (
1.60−1.64
1.64
= −0.024%) and the index is decreased from 1745.33 to 1712.30
(
1712.30−1745 .33
1745 .33
= −0.0189%). Hence, the performance of LBS Bina Berhad is slightly worse
than the index.
9. Page 9
The share price of LBS Bina Bhd on 6th August 2015 is RM1.48 while on 1st September 2015
it decreased to RM1.28 (
1.28−1.48
1.48
= −0.135%). The index on 6th August 2015 is 1694.64
that dropped to 1609.21 on the 1st September 2015 (
1609.21−1694.64
1694 .64
= -0.05%). Hence, the
performance of LBS Bina Berhad is worse than the index.
The share price of LBS Bina Bhd on 2nd September 2015 is RM1.34, which decreased to
RM1.51 on 23th September 2015 (
1.51−1.34
1.34
= 0.127%) and the index on 2nd September
2015 is decreased from 1590.19 to 1613.17 on 23th September 2015 (
1613.17−1590 .19
1590 .19
=
0.0145%). Hence, the performance of LBS Bina Berhad is better than the index.
The share price of LBS Bina Bhd on 7th October 2015 is RM 1.41, which decreased to
RM1.45 on 11th November 2015 (
1.45 −1.41
1.41
= 0.028%) and the index on 7th October 2015 is
decreased from 1689.25 to 1665.32 on 11th November 2015 (
1665 .32−1689 .25
1689 .25
= −0.0141%).
Hence, the performance of LBS Bina Berhad is better than the index.
Based on both of the graphs above, the share price of LBS Bina Bhd and KLCI increases and
decreases simultaneously although there are times where KLCI’s share price will be
fluctuated. However, in the year 2015, the graph is unstable and the decreasing of the share
price is greater than the increasing of the share price. As a conclusion, the 5 points that was
shown above stated the investment in LBS Bina Berhad is not recommended.
10. Page 10
INVESTMENT RECOMMENDATION
According to LBS Bina Berhad 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. Even though the general expenses ratio (GER) increase from the year 2012 to
the year 2013, the overall profit has indicated that the business is doing fairly well. LBS Bina
Berhad ability to pay off its current liabilities had slightly decreased from 1.78:1 to 1.51:1
but it still did not satisfy the 2:1 ratio of staying within the borderline of borrowing. Besides
that, LBS’s total debt ratio (TDR) showed that its total debt has decreased from 63.2% to
56.58% in 2013. Having the TDR in 2013 below 50% ensured that the business will not have
a higher risk of bankruptcy. Their stock turnover has taken a shorter period of time so they
are taking a shorter time to generate more cash quickly, making the business to be able to
pay off its liabilities. Moreover, LBS Bina Berhad interest coverage ratio (ICR) has also shown
an improvement in the business’ ability to pay its interest expense.
LBS Bina Berhad earned more profit in 2013 compared to 2012. In other words, the
company has demonstrated a decent profitability and financial stability and its shares are
available at a cheaper price (P/E Ratio <8.7). An investor will need to wait for a period of
time that is 1.625 years (19.5 months) as of 2013 to recoup his investment. The company
has shown good promise in terms of their growth in revenue. As such, LBS Bina Berhad has
proven to be a stable company. So, LBS Bina Berhad’s share is worth to invest back then.
However, the graph of the share price of 2015 shows that LBS Bina Berhad is not making
profit as the economy in Malaysia is not stable and recession. It is not recommended to
invest LBS Bina Berhad.
20. Page 20
REFERENCES
- LBS Bina Group Bhd LBS (Malaysia). (n.d.). Retrieved February 01, 2016, from
http://quotes.wsj.com/MY/XKLS/LBS/company-people
- Equities. (n.d.). Retrieved February 01, 2016, from
http://markets.ft.com/research/Markets/Tearsheets/Business-profile?s=LBS:KLS
- LBS Bina Group Berhad - Home.com.my. (2014). Retrieved February 01, 2016, from
http://www.home.com.my/article/lbs-bina-group-berhad
-LBS: D' IslandResidence.(n.d.).RetrievedFebruary02,2016, from
http://www.lbs.com.my/property-collections/residential/klang-valley/landed-property/d-island-
residence/
- LBS: TelokGongIndustrial Park.(n.d.).RetrievedFebruary02,2016, from
http://www.lbs.com.my/property-collections/commercial/klang-valley/mixed-development/telok-
gong-klang/telok-gong-industrial-park/