Lagenda Properties (LAGENDA) continues to strengthen its position as Malaysia’s leader in affordable housing, with strategic management moves and a focus on launching new projects. The company has fortified its management team, launched record-breaking projects, and is gearing up for a significant boost in sales with its upcoming developments. Coupled with potential benefits from the government’s proposed Budget 2025 initiatives, Lagenda is well-positioned to sustain its growth trajectory.
Strengthening Management Amid Crisis
Lagenda has enhanced its management team following an investigation involving a senior personnel. The company appointed Koong Wai Seng as Executive Director and Loh Lai Pui as Chief Financial Officer, both industry veterans with extensive experience in finance and property development. These strategic additions signal Lagenda’s commitment to safeguarding its operations and ensuring the company is equipped to navigate future challenges.
Impressive Sales Performance and Strong Project Pipeline
Despite recent headwinds, Lagenda’s share price has shown a recovery, climbing about 12% in recent months to RM1.37. The company recorded a remarkable quarterly sales figure of RM297 million in 2Q24, driven primarily by the success of its Lagenda Ardea project in Selangor, which achieved a 99% take-up rate. This success highlights the market’s robust demand for Lagenda’s affordable housing offerings.
Notably, over 50% of its 1H24 sales came from projects outside of Perak, especially in Johor, through developments like Puncak Warisan and Lagenda Suria. As of May 2024, the company had approximately RM500 million in sales bookings, indicating a solid pipeline for 3Q24. With the current momentum, Lagenda is on track to exceed its RM1.2 billion sales target for the year.
Looking forward to 2025, Lagenda expects even stronger sales performance, fueled by projects launched in 2024 that are projected to contribute significantly to earnings in 2026. The company’s strategy of launching projects 2.6 times the size of those in 2023 reflects its ambitious growth plans. UOB Kay Hian forecasts a three-year revenue and earnings compound annual growth rate (CAGR) of 27% and 28%, respectively—the highest among its property developer peers.
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