PETALING JAYA: Lagenda Properties Bhd
is expected to convert about RM500mil in sales bookings as of May into actual sales in the third quarter of 2024 (3Q24).
UOB Kay Hian (UOBKH) Research said this positioned Lagenda to achieve and potentially exceed its sales target of RM1.2bil for the year.
“We expect 2025 to see even stronger sales, fuelled by momentum from 2024’s launches of 2.6 times the size of 2023 launches,” it noted.
The research house expected these projects to contribute significantly to earnings in 2026 as they enter the mid-stage of development, where earnings recognition is at its peak.
It had forecast Lagenda’s revenue and earnings growth to achieve a three-year compounded annual growth rate of 27% and 28%, respectively.
This will be driven by consistent yearly sales growth, which is expected to reach between RM1.6bil and RM2bil in 2026.
Meanwhile, the research house said Lagenda is poised for growth with its upcoming Kulai launches in Johor, where the company plans to sell single-storey landed homes priced between RM260,000 and RM280,000.
“Lagenda’s total land bank in Kulai spans approximately 1,000 acres, which is significantly larger than Eco World Development Group Bhd’s (EcoWorld Malaysia) 400-acre landbank and second only to IOI Properties Group Bhd, with around 3,418 acres,” the research house said.
The momentum in Kulai has been building in recent months, particularly with an influx of inquiries for data centres.
For example, it said EcoWorld Malaysia recently sold land to Microsoft Corp for RM75 per sq ft and to Princeton Digital Group for RM90 per sq ft.
“Lagenda has also received interest regarding data centre land sales and is open to selling if the price is right,” it noted,
Additionally, UOBKH Research said Lagenda stands to benefit from the proposed Budget 2025 wish list, particularly the Madani Deposit Scheme, alongside the ongoing adjustments to civil servant salaries.
The Madani Deposit Scheme aims to provide up to RM30,000 in deposit assistance for first-time homebuyers in the Bottom-40 (B40) and lower Middle-40 (M40) groups, which is expected to alleviate affordability challenges by reducing the upfront costs of purchasing a home.
“Lagenda stands to gain from this, as its target market predominantly consists of B40 and lower M40 households,” it noted.
Furthermore, it said the civil servants’ salary adjustments, effective from December 2024 and January 2026, will increase disposable incomes, particularly for lower-grade civil servants.
Currently, about 60% of Lagenda’s buyers are from the civil servant demographic.
“With the salary hikes, an even larger portion of civil servants may now afford homes especially those from Lagenda,” it said.
