• Maintain BUY (TP: RM1.48). Lagenda's 9MFY24 revenue surged by 26.8% YoY to RM755mn, primarily driven by higher contributions from new sales and the construction progress of active phases and newly launched projects. The 9MFY24’s property sales rising to RM869mn (+9% YoY), achieving the company’s highest-ever quarterly property sales of RM349mn. Core net profit surged by 25% YoY to RM138.4mn, inline with our estimates, accounting for 69% of our full-year forecast. We maintain our recommendation of a BUY call with a TP of RM1.48 pegged at 8.1x price-to-earnings ratio (PER) to fully diluted FY25F EPS of 18 sen.

• Key highlights. On QoQ basis, Lagenda reported a revenue increase of 15.3% to RM283.4mn, driven by significant progress in ongoing projects such as Lagenda Suria Phase 1A and Lagenda Aman. The trading segment also contributed to the growth, with a 2.4% rise in revenue to RM77.0mn, boosted by higher external sales during the quarter. Despite the revenue growth, core net profit declined slightly by 2.3% to RM47.3mn, mainly due to a lower gross profit margin and a reduction in other income.

• Earnings Revision. No revision.

• Outlook. Lagenda's outlook remains positive, underpinned by an expected surge in revenue from upcoming project launches, particularly in 4QFY24. As of 30 September 2024, the company reported unbilled sales of RM835.2mn and additional bookings amounting to RM306.5mn, further enhancing its earnings potential.

Source: BIMB Securities Research - 26 Nov 2024