Lagenda Properties Berhad announces its 1Q financial results with revenue and profit after tax of RM181.0 million and RM39.3 million, while confirmed sales surged to RM257.5 million, charting a 78% year-on-year increase.
Revenue and PATAMI were 6% and 16% lower compared to the previous year’s corresponding quarter (1Q 2022) due to the different timing and stages of construction activities directly impacting revenue recognition it said in a filing to Bursa. The company said it anticipates an acceleration in the construction progress for various townships, including Darulaman Lagenda (Kedah) and Lagenda Tropika (Perak), in the later part of the year which will lead to a corresponding increase in progress billing, allowing revenue and profit to catch up for FY2023.
As for FY2023, Lagenda remains bullish backed by the strong demand for the Group’s homes as evidenced by its growth in confirmed sales. Notably, a significant portion of the growth in confirmed sales was driven by booking conversions in Darulaman Lagenda, which achieved an outstanding take-up rate of 94% as at the end of 1Q 2023. Building upon this success in Kedah, the Group has plans to launch Phase 3 in the second half of 2023. Revenue visibility is further underscored by unbilled sales amounting to RM781.8 million, while bookings of RM433.0 million as of 31 March 2023 provide a solid pipeline for future sales conversion.
The group is anticipating the development of a major affordable township next year in Kulai, Johor. This upcoming large-scale township will boast a GDV of RM4 billion and will comprise 12,000 units of affordable homes with commercial parcels.
