AFFORDABLE housing specialist Lagenda Properties Bhd (formerly DBE Gurney Resources Bhd) is on track to achieve a RM1 bil sales target for its current financial year based on robust take-up rate for landed homes within integrated townships that are priced between RM150,000 and RM200,000.
After all, the Perak-based property developer is currently in a net cash position which provides plentiful of opportunities for future growth, according to its managing director Datuk Jimmy Doh Jee Ming.
“We believe our model is highly scalable and will continue to expand our business blueprint in other states of Malaysia to achieve our vision of being a Nationwide Affordable Township Developer.”
Lagenda will be launching its third township in Tapah which boasts a RM1.9 bil gross development value (GDV) in 3Q 2021.
The successes of Bandar Baru Setia Awan Perdana and Lagenda Teluk Intan are a testament of the company’s execution capability of which Lagenda aims to replicate the previous framework while striving to achieve better efficiency on every new township.
“On top of our current township projects, Lagenda envisions to launch at least one township annually with sales of 2,000 homes in each new township per annum,” projected Doh.
“Based on our current margins, each township is expected to contribute circa RM100 mil to our bottom line.”
Lagenda posted a net profit of RM55.6 mil for its first quarter ended March 31, 2021 which matches the RM55.7 mil achieved in the preceding quarter.
As of March 31, the group’s unbilled sales stood at RM515.5 mil with RM4.4 bil remaining GDV for on-going and upcoming townships.
“The group once again attained industry leading margins owing to our efficient and scalable business model, backed by deliberate land acquisition strategy,” justified Lagenda.
Nevertheless, the developer saw its revenue contracted by 16.1% to RM228.7 mil from the preceding quarter due to one-off consolidation adjustments in 4Q 2020 arising from the acquisitions of operating subsidiaries as part of the asset injection exercise.
On the bright side, however, revenue derived from the property development segment has improved by 27.1% as compared to the immediate preceding quarter.
At the close of yesterday’s trading, Lagenda was up 2 sen or 1.47% to RM1.38 with 667,700 shares traded, thus valuing the company at RM1.13 bil. – May 26, 2021
