Lagenda Properties Bhd managing director Datuk Jimmy Doh
PETALING JAYA: Lagenda Properties Bhd
anticipates revenue recognition to improve in 2024, driven by the accelerated pace of its construction progress.
With the group’s construction activities progressing well, managing director Datuk Doh Jee Ming said Lagenda should see a consistent quarter-on-quarter improvement throughout the year.
“We are expanding our footprint throughout the nation, leveraging our extensive remaining land bank of 4,700 acres spanning five states, namely Perak, Kedah, Johor, Selangor and Pahang.
“We will also be seeking opportunities to expand our land bank to further fortify our position in the market, while still prioritising return on equity and returns to shareholders,” he told StarBiz.
Going into 2024, Doh said the overall Malaysian property market is expected to see a positive year, with the government’s initiatives set to boost home ownership amid a stable interest-rate environment.
“However, the overhang issue in some higher-end segments and rising cost of living could pose challenges.
“Given our focus on affordable housing and the fact that a significant portion of our buyers are first-time homeowners, we foresee demand resilience.”
Doh said the robust take-up rates for the group’s homes underscored the enduring appeal of Lagenda’s townships.
“It affirms the effectiveness of our strategic approach. Our commitment remains steadfast in adapting to market dynamics, addressing customer needs and capitalising on opportunities to ensure sustainable growth,” he said.
For the third quarter ended Sept 30, 2023, Lagenda’s net profit rose to RM38.77mil from RM35.73mil in the previous corresponding period, mainly due to improvement and contribution from its property development segment as sales conversion improved.
Revenue in the third quarter grew to RM217.89mil from RM180.72mil a year earlier, driven by newly launched projects such as Darulaman Lagenda phases one, two and three, Taman Mulia phase three, BBSAP phase 4B and Lagenda Teluk Intan phase 3B.
Basic earnings per share stood at 4.63 sen compared with 4.27 sen previously.
For the nine-month period ended Sept 30, 2023, net profit stood at RM111.30mil compared with RM133.12mil a year earlier, while revenue was at RM595.23mil compared with RM632.02mil previously.
From a sales perspective, Doh said he is pleased with Lagenda’s performance this year. “Sales is a key indicator of demand and future revenue. We had achieved sales of RM796mil in the first nine months, reflecting an impressive 44% increase compared to the same period last year, surpassing the total sales for the entire 2022 financial year (RM789mil).”
As at Sept 30, 2023, Doh said Lagenda’s unbilled sales amounted to RM855.1mil, which will provide visibility to the group for the coming quarters.
“We also have a robust pipeline with bookings of RM297mil, ensuring a solid foundation for future sales. Notably, the recent launch of our first project in Johor, specifically in Mersing, has garnered tremendous response within the first month.”
During the first half of the year, Doh said Lagenda experienced a temporary slowdown in construction progress, primarily due to the transition of its new projects in Teluk Intan and Kedah to the industrialised building systems (IBS)
“This is a strategic move aimed at reducing reliance on manual labour, consistent quality and faster speeds for construction in the future.”
He added that the third quarter of 2023 showcased a positive trajectory, as Lagenda successfully implemented IBS for its projects.
“This positions us for accelerated progress in the upcoming quarters. We anticipate a more efficient conversion of sales into revenue and profits, moving forward,” he said.
