PETALING JAYA: Lagenda Properties Bhd
expects only a manageable impact from the recent diesel price surge, though it acknowledges some pressure on infrastructure costs due to higher upfront mobilisation expenses.
According to UOB Kay Hian (UOBKH) Research, certain infrastructure contracts may need renegotiation, but the overall exposure remains limited. Construction costs typically make up 40% to 50% of a project’s gross development value (GDV), while infrastructure accounts for just 2% to 5%.
Management sees the impact as contained because major infrastructure works at its Kulai township, planned for about 15,000 units across 1,070 acres – are largely completed.
Remaining exposure relates mainly to the second Sungai Petani township, yet to be launched.
UOBKH Research said these costs can be passed through via price adjustments and should stay modest on a per‑unit basis, supported by the scale of the new Sungai Petani development, estimated at 8,500 units across 855 acres.
Lagenda is maintaining its RM2.65bil launch target for 2026, up 16% year‑on‑year, with 77% of GDV weighted towards the second half of the year, giving room to adjust pricing if needed. Management is targeting RM1.9bil in sales for 2026, an 11% increase from 2025.
Margins are expected to improve gradually over 2026-27, with UOBKH Research forecasting earnings growth of 50% in 2026 and 26% in 2027 as upfront township infrastructure spending tapers.
The firm projects a 37% earnings CAGR for 2025-27, supported by robust launches and RM1.6bil in unbilled sales. Lagenda also offers the highest dividend yields in the research house’s coverage, at 5.7% for 2026 and 7.2% for 2027.
