Phillip Research says Lagenda Properties’ 9M23 results missed both the research firm’s and consensus expectations
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00:00 In focus this Wednesday morning is Legenda Properties.
00:05 Philip Research says the stock remains a buy, though it trimmed its target price to
00:09 RM1.51 from RM1.55.
00:12 The counter lost trader at RM1.20.
00:15 So according to Philip Research, Legenda's nine-month 23-quarter net profit of RM106.3
00:21 million made up just 57% of its full-year estimates and 62% of consensus expectations.
00:29 The deviation was mainly attributable to the slower-than-expected progress billings from
00:34 the Legenda Telok Intan and Kedah Daruaman Legenda townships due to delay caused by its
00:39 transition to the industrialised building systems.
00:42 There was sequential improvement though in third-quarter revenue of RM217.9 million,
00:48 suggesting that the construction progress across the affected townships is showing modest
00:53 recovery.
00:54 During this quarter, Legenda clinched twin record highs, confirmed sales of RM289 million
01:00 and unbuilt sales of RM855.1 million.
01:04 Philip Research lowering its 2023-25 earnings forecast by 12% to 24% after factoring in
01:11 the slower-than-expected construction progress for the affected townships.
01:16 It expects Legenda to show modest earnings rebound of 40% year-on-year in 2024.
01:21 Supported by the company's record high unbuilt sales and ongoing expansion in Johor and Kedah.
01:27 So what's the consensus?
01:28 According to Bloomberg data, there are in total three buy calls on Legenda, with target
01:33 prices averaging out to RM1.58.
01:36 The stock settled yesterday at RM1.20, so that implies a potential return of 31.7%.
01:43 [MUSIC]