Lagenda Properties eyes 20% near-term growth on rising demand

PETALING JAYA: Lagenda Properties Bhd is targeting up to 20% growth for its current financial year, on the back of strong continued demand for its affordable homes.

Given the Perak-based property developer’s confirmed sales achievement in the first half of this year, managing director Datuk Jimmy Doh said achieving its 2023 sales target is a realistic expectation.

“We’ve seen a significant surge in confirmed sales and project take-ups, reaching RM507mil, a 42% increase, compared to the same period last year,” he told StarBiz.

Doh said the group’s stellar performance so far this year is largely attributed to the success of Darulaman Lagenda, the company’s inaugural township in Sungai Petani, Kedah.

“It demonstrates our ability to replicate success beyond Perak. With this strong momentum, we are aiming for a confirmed sales growth of 15% to 20% compared to 2022,” he said.

Doh emphasised that affordable housing is a necessity and “not a transient trend.”

“The demand for landed properties below RM300,000, which is our focus, continues to be robust. Notably, this segment has the lowest overhang, highlighting the sustained demand and relatively low supply.

“Looking ahead to 2024, we anticipate this trend to persist, underlining the long-term viability of affordable housing in Malaysia.”

Doh said Lagenda had plans to launch over 7,000 homes across Perak, Kedah and Johor this year. “This is a significant increase in our launch volume, compared to the 4,800 homes in 2022.

“So far, we have launched close to 2,900 units with 4,300 units more targeted for the rest of the year. Among these launches is our entry into Johor with an expected 600 units in Mersing.”

Doh said Lagenda had a proven track record of delivering landed affordable housing with lifestyle facilities.

“Our key projects have recorded take-up rates of above 90%. This reaffirms that we are attuned to the market’s preferences and needs.

“With our strong track record, we are confident that the new launches will be well-received by the market.”

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 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.

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.

Doh said Lagenda currently had a remaining landbank of almost 4,700 acres across five states, namely, Perak, Kedah, Pahang, Johor and Selangor.

“While we are actively exploring opportunities to expand our footprint, we always prioritise projects that align with our expected returns.

“Lagenda has a strong balance sheet with low net gearing of 0.05 times, giving us the financial flexibility to pursue strategic initiatives and increase our presence,” he said.