PETALING JAYA: Analysts believe Lagenda Properties Bhd
’s future earnings will remain supported by its sizeable project pipeline and unbilled sales visibility, despite the property developer’s results for the first quarter ended March 31, 2026 (1Q26) falling short of consensus’ expectations.
Phillip Capital Research is expecting stronger sequential earnings growth for the group, supported by RM1.7bil in unbilled sales, which should translate into higher progress billings from ongoing projects, including Lagenda Ardea Phases 1A and 2, Darulaman Phase 3B, and La Lumiere Phases 1A and 2A.
It highlighted that Lagenda is targeting RM1.9bil in property sales for 2026 versus its previous year’s target of RM1.7bil, driven by planned township launches in Senawang and Sungai Petani in the second half of financial year 2026.
It noted that the launches are expected to be material contributors to earnings from late 2026 onwards.
BIMB Research also pointed out Lagenda’s strong sales momentum, detailing the group’s healthy earnings pipeline.
“We remain positive over Lagenda’s outlook, supported by healthy 1Q26 property sales of RM372.5mil, record unbilled sales of RM1.67bil, and a sizeable 3,998-acre landbank with estimated gross development value of RM10.28bil, which should support medium-term launch and earnings visibility,” it explained.
Nonetheless, the research house added that the group faces several key risks, which include slower construction progress, weaker loan approvals, delayed cash collection and higher financing costs.
BIMB Research reiterated its “buy” call on the group.
It maintained its target price of RM1.67, based on a 7.2 times price-to-earnings multiple applied to its fully diluted earnings per share forecast for the financial year ending 2027 of 23 sen.
“We continue to like Lagenda for its resilient affordable landed township demand, record unbilled sales and improving revenue recognition from a larger launch base.”
For 1Q26, Lagenda’s net profit dipped marginally to RM44.17mil from RM44.59mil in 1Q25, while revenue slipped to RM262.12mil from RM264.4mil a year earlier.
The group said the revenue decline was mainly due to lower contributions from the property development segments.
Meanwhile, the group’s revenue was largely stable at RM262.1mil, although the research house highlighted a 0.9% decline year-on-year (y-o-y), while profits remained flattish at RM60.3mil.
BIMB Research said that Lagenda’s softer revenue was mainly due to slower construction progress during the festive period and lower contribution from completed projects.
Moreover, the group’s property development revenue eased 1.3% y-o-y to RM232mil, partly cushioned by continued progress at Lagenda Ardea Phase 2 and Seri Embun, according to the research house.
Trading revenue, on the other hand, grew 18.4% y-o-y to RM28.7mil, supported by stronger building material demand from external contractors, it said.
Furthermore, the group remains cautious of geopolitical uncertainties, inflationary pressures and broader external market conditions.
However, the property developer said in a statement that it expects the overall impact on operations to remain manageable, supported by resilient domestic demand from its affordable housing- focused business model.
