Lagenda Properties 3Q net profit down 8.58% as construction ops hit by MCO

KUALA LUMPUR (Nov 15): Lagenda Properties Bhd's net profit fell 8.58% to RM45.54 million for the third quarter ended Sept 30, 2021, from RM49.81 million a year earlier, mainly in the absence of inter-group adjustment arising from acquisitions that were recorded previously.

The group also recorded lower construction profit as the segment's revenue declined because the Movement Control Order impacted operations, Lagenda said in a bourse filing.

Property development profit, however, rose in the quarter, which the group attributed to the acquisition of a subsidiary, Maxitanah Sdn Bhd.

Earnings per share fell to 5.74 sen, from 29.2 sen in the same quarter last year.

Quarterly revenue, meanwhile, dropped 4.89% to RM185.22 million from RM194.74 million, again in absence of the inter-group adjustment and weaker construction revenue, offset by higher property development, while the trading division's revenue also rose.

For the nine-month period ended June 30, 2021, Lagenda's net profit rose 52.57% to RM144.04 million from RM94.4 million in the previous corresponding period. Nine-month revenue increased 37.98% to RM584.44 million, from RM423.56 million.

On prospects, Lagenda reiterated that it is confident of achieving its RM1 billion sales target by year end, “barring unforeseen delays and with our historical bookings conversion rate of above 90%”.

At end-September, the group had total confirmed sales of RM496 million, with additional total bookings of RM684 million. Unbilled sales stood at RM591 million, which the group said provides strong cash flow visibility.

“We will also continue to seek suitable and potential land banks to further expand our property development business in the affordable housing segment across the nation,” it added.

Shares of Lagenda Properties rose one sen or 0.68% to close at RM1.48 on Monday (Nov 15), giving the property developer a market capitalisation of RM1.21 billion. The counter had risen by 22.31% this year.

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