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It is not a norm for LBS to issue dividend within the same year as the current financial year. Historically they would declare dividend after year ends closing, with exception of special dividend. While I welcome the dividend payout, I would much rather they keep the money for reinvestment, given the challenging economic times we are in right now. LBS order book has been dwindling and so are their revenues & net profit. Either the Management is very confident of future projects to come that they are willing to issue this latest dividend or they have nothing much ahead and this latest dividend announcement is to try to retain investors & not cause investors to panic. LBS has many potential projects but it is always delayed or postpone. Till date, the Solar Farm project has yet to be completed. It was stated to complete in December 2025, and now is already Aug 2026. Apart from this the Management should really take it seriously to find more recurring income and reduce heavy reliance on Property Development & Constructions.
I doubt so will have any surprise. Maybe will be slightly better than 1st QR, but doubt any fly to the moon result. I think we will only start to see some good results in 2nd half of the year. The upcoming QR is 2nd Quarter (Apr, May, & June'2026)
One of the main issue with LBS is the slow property launches. They always set high GDV target every year and most of the time cannot hit the target, due to project delays. Look at the Solar Farm Project, it was suppose to be completed end of 2025 and operational early this year but the completion date has been delayed till end of this year. Tan Sri said the 8x8 Strategy will see an average of RM 2.6 billion GDV launch each year from 2025 to 2027 but in the first year the Company has failed to hit target. Now in 2026 which is the 2nd year of the 8x8 Strategy, I think they will yet again fail to hit the target because the 1st QR is quite bad, and LBS barely launch anything substantial in the first 4 months of the year. The Management is either sleeping or not working hard enough.