PETALING JAYA: Lagenda Properties Bhd
is favoured for its leadership in the niche affordable housing market and prospects of a new earnings upcycle, which should support meaningful valuation expansion.
In a report to clients, CGS International (CGSI) Research said higher-than-expected sales, lower building material prices, and new land acquisitions in strategic locations were its catalysts, while downside risks included lower property launches and demand, delays in progress billings and introduction of unfavourable housing policies.
It noted that Lagenda posted a higher fourth quarter ended Dec 31, 2025 (4Q25) core net profit of RM58.1mil (35% quarter-on-quarter or q-o-q, 92% year-on-year or y-o-y), with a higher revenue of RM297.4mil (17% q-o-q, 27% y-o-y).
“This lifted full-year financial year 2025 (FY25) core net profit to RM189.1mil (up 12% y-o-y), coming in 7% above our and Bloomberg consensus estimates,” it added.
The research house attributed the outperformance primarily to higher-than-expected revenue from its core property development segment, coupled with lower finance costs.
On a y-o-y basis, the stronger FY25 earnings were due to higher revenue and improved profit margins from the property development segment, it added.
The property group has announced a second interim dividend of 3.5 sen for 4Q25, bringing the full-year FY25 total dividend to 6.5 sen.
CGSI Research noted that the group recorded RM504.9mil in 4Q25 sales, representing 93% y-o-y growth compared with RM261.0mil in 4Q24.
The group achieved record-breaking annual sales of RM1.71bil (52% y-o-y) and exceeded its FY25 sales target of RM1.5bil, underscoring sustained demand for affordable homes.
The research house also expected Lagenda to launch two new townships in Sungai Petani, Kedah and Negri Sembilan in FY26, supporting its bullish projection for sales to reach RM1.8bil by FY27.
“Meanwhile, its record unbilled sales of RM1.6bil (18% q-o-q) coupled with healthy outstanding bookings of RM477mil, as of end-4Q25, should also anchor near-term performance, in our view,” it said.
It reiterated an “add” on Lagenda with an unchanged target price of RM2.03.
The stock last traded at RM1.46, valuing the group at some RM1.2bil.
