by NUR HAZIQAH A MALEK / source: lagendaproperties.com
LAGENDA Properties Bhd’s (previously DBE Gurney Bhd) acquisitions in the third quarter (3Q) have strengthened its balance sheet as the group turns to focus on building and supplying affordable housing in the country.
Its company MD Datuk Doh Jee Ming said the market outlook for affordable housing has remained positive and resilient with strong demand from first-time homebuyers looking for homes priced below RM200,000.
“In addition, the government has allocated RM1.2 billion to develop affordable homes for low-income families under Budget 2021 where Lagenda will stand to benefit as these incentives are given to our target markets of the B40 (bottom 40%) and M40 (middle 40%) income groups.
“With our unbilled sales of RM480 million and total sales achieved of RM550 million (as at Sept 30), this placed the group in a strong position to deliver our sales target and earnings performance for 2020,” he said.
In a filing to Bursa Malaysia yesterday, the company noted as of Sept 30, its existing projects have achieved a total sale of RM550 million with unbilled sales of RM480.4 million and a remaining gross development value (GDV) of RM1.87 billion.
“The group will continue to adapt with the challenging times ahead to ensure its long-term sustainability, despite the uncertainties caused by the Movement Control Order.
“In the future, the group will continue to expand its property development business in the affordable housing segment via the acquisition of existing ongoing projects or potential landbank for development or joint venture with potential landowners out of Perak,” the report noted.
Doh said following its acquisition of 623-acre (252.11ha) land in Tapah, Perak, and the joint venture to develop a 230-acre land in the same place, it will be building its third affordable housing township with plans to launch next year.
“These two pieces of land will be our third affordable housing township which we are planning to launch next year with a GDV of RM1.5 billion to RM2 billion,” he said.
The group has posted a drastic year-on-year (YoY) increase of 973.5% for its net profit in the third quarter ended Sept 30, 2020 (3Q20), to RM49.81 million due to profits from its newly acquired units namely Blossom Eastland Sdn Bhd, Rantau Urusan (M) Sdn Bhd and Yik Wang Trading Sdn Bhd.
Revenue for the quarter rose by 824.1% YoY to RM194.73 million on the contribution from its newly acquired units. For the year-to-date period, the group posted a net profit of RM94.4 million against the previous earnings of RM5.13 million while revenue grew nearly 10-fold to RM423.56 million from RM47.56 million.
The company’s shift into the property sector has attracted investors’ interest, shifting its share price higher within the past three months.
The move has doubled the company’s shares value since May, following its divestment of poultry-related business and deals as well as its recently signed joint venture with Bina Darulaman Bhd to build affordable housing in Kedah.
Its move to the property market was risky due to the external headwinds, however, the company believed there is a pent-up demand that it can capitalise on.
At market close yesterday, the company’s share price fell by 1.68% to RM1.17 from the previous closing price of RM1.20.