KUALA LUMPUR (21 November): Lagenda Properties Bhd saw its third quarter net profit fall by 21.54% to RM35.73 million from RM45.54 million a year earlier, mainly due to initial costs incurred to prepare for future project launches and provision for tax prosperity.
Revenue for the third quarter ended September 30, 2022 decreased by 2.43% from RM185.22 million to RM180.72 million, according to the group’s stock exchange filing.
Net profit for the nine months ended September 30 fell 7.58% to RM133.12 million from RM144.04 million a year earlier, despite revenue rising 8.14% to 632 RM.01 million vs. RM584.44 million.
Lagenda, in its filing, also announced the adoption of a dividend policy consisting of paying out at least 25% of its consolidated profit after tax and minority interests in the form of dividends from the current year, with a revision every two years.
Lagenda Managing Director Datuk Jimmy Doh said the group’s bookings and sales momentum continued to be healthy, with unbilled sales of RM653.6 million as of September 30.
“We currently have a presence in two states and aim to venture into two additional new states in 2023,” he said in a statement.
Despite some headwinds facing the housing sector, such as rising interest rates and tough loan approvals, the group remains confident about the demand for affordable housing.
“There is a housing shortage within reach of the B40 group in most states in Malaysia, creating a large addressable market for Lagenda. Our focus on affordable landed housing allows us to remain somewhat isolated during difficult times.
“We see opportunities to grow our presence in more areas as the vast majority of Malaysians continue to prioritize affordable living spaces with quality lifestyle facilities,” Doh said.
Shares of Lagenda closed down one sen or 0.85% at RM1.17 on Monday (November 21st), giving the group a market capitalization of RM979.67 million.