PETALING JAYA: Lagenda Properties Bhd
is confident of its positioning and ability to grow and deliver value over the long term.
The property developer said its sizeable vacant land bank of almost 4,700 acres across five states, with an estimated gross development value of RM12bil, provides a solid foundation for growth.
“We also have a strong balance sheet with low net gearing of 0.05 times, giving us the financial flexibility to pursue strategic initiatives to widen our footprint,” it said in a filing with Bursa Malaysia.
For its second quarter ended June 30, 2023, Lagenda’s net profit dipped to RM33.19mil from RM50.38mil in the previous corresponding period.
Revenue in the second quarter stood at RM196.38mil from RM258.55mil a year earlier.
Basic earnings per share came in at 3.96 sen, versus 6.03 sen previously.
Lagenda said demand for its homes continued on a strong trajectory in the second quarter of 2023.
The group recorded confirmed sales of RM507mil in the first half of the year and has surpassed last year’s achievement by 42%, driven by Darulaman Lagenda in Kedah.
“Revenue and earnings visibility is further underscored by unbilled sales amounting to RM811.2mil as at June 30, 2023, while bookings of RM347.6mil provide a solid pipeline for future sales,” it said.
For the six-month period ended June 30, 2023, Lagenda’s net profit stood at RM72.52mil compared with RM97.39mil in the previous corresponding period while revenue was at RM377.34mil compared with RM451.30mil previously.
Managing director Datuk Jimmy Doh said the group has been transitioning from traditional construction method to industrialised building system (IBS) for its newer projects in Teluk Intan, Perak, and Kedah.
“This led to a temporarily slower construction pace, which was expected, as we were getting used to the new IBS system.
“Owing to this, revenue recognition was lower in comparison to the previous financial year.
“However, we are now moving towards full implementation of the IBS in these projects and we expect to see an acceleration in construction speed,” he said.
Doh said Lagenda’s confirmed sales and project take-ups have surged strongly, reaching RM507mil for the first half of 2023, which was the strongest performance in any six months and a spike of 42% compared to the same period of last year.
“With construction activities gaining momentum, we will see faster conversion of sales into revenue and profits in the coming quarters.
“There is still a significant shortage of affordable housing across most states and demand will remain robust in the foreseeable future,” he said.
Doh pointed out that Lagenda has a proven track record of delivering landed affordable housing with lifestyle facilities, adding that the group’s key projects have recorded take-up rates of above 90%.
“This reaffirms that we are attuned to the market’s preferences and needs.
“Affordable housing development goes beyond merely constructing homes. It involves creating sustainable communities that prioritise the environment and well-being of its residents,” he said.
