KUALA LUMPUR: Lagenda Properties Bhd's net profit increased 21.4 per cent year-on-year (YoY) in the fourth quarter (Q4) ended December 31, 2021 to RM56.45 million from RM46.50 million recorded a year ago.
In an exchange filing yesterday, the property developer said this was attributed to higher confirmed sales and progress work than the previous quarter.
Its Q4 revenue slipped 7.9 per cent YoY to RM251.11 million from RM272.59 million, mainly dragged by slower progress work in construction operation.
For the cumulative financial year ended December 31, 2021 (FY21), Lagenda Properties' net profit surged 42.3 per cent to RM200.49 million from RM140.90 million, while revenue jumped 20 per cent to RM835.55 million from RM696.15 million.
The company would remain focused on providing affordable housing segments catering to the B40 and M40 income groups, attracting healthy demand.
"We remain optimistic on the growing demand for affordable housing. This was proven by a commendable confirmed sales figure of RM261 million in Q4 of 2021, representing a 38.6 per cent growth as compared to RM167 million in the similar quarter of the preceding year."
The company has also adopted a 'buyer-introduce-buyer' scheme which has proven to be successful, as demonstrated by higher booking trends.
Lagenda Properties has secured a total of RM757 million worth of confirmed sales with additional bookings of RM649 million in FY21.
"With an aggregate booking and sales amounting to RM1.45 billion, we are confident that the booking conversions and future sales billings will further bolster our financial position as we look to further expand through strategic land acquisitions."
As of December 31, 2021, the company's unbilled sales stood at RM 604 million, providing strong cash flow visibility to the company.
"We have set the wheels in motion to achieve our vision to be a nationwide affordable township developer.
"To scale and expand across more states most expeditiously, we have a joint venture arrangement with Inta Bina Group Bhd to undertake the construction of our projects outside Perak.
"We are on a growth trajectory and will be rolling-out townships in Kedah and Johor besides our home turf in Perak."
Lagenda Properties' net cash position and low gross gearing of 0.23 times augur well for further expansion and land acquisition opportunities.
"We are constantly looking for ways to add value further to increase the attractiveness of our townships with sustainability in mind.
"We are already working to install 1,000 residential solar photovoltaic systems across three township projects in the state of Perak."