Latest news with #RM1.78
The Star
7 days ago
- Business
- The Star
Lagenda rides affordable housing wave into 2025
PETALING JAYA: Lagenda Properties Bhd is expected to see stronger sequential earnings momentum going forward, underpinned by continued steady demand for affordable housing. Phillip Capital Research expects the property developer's sales momentum to continue building sequentially, supported by its RM2.1bil in planned launches for 2025. 'Notably, Lagenda launched its RM4bil Johor Kulai township in April, which we anticipate to be a key sales driver for the group,' it said in a report. For the first quarter ended March 31, 2025 (1Q25), Lagenda's net profit rose to RM44.59mil from RM42.72mil a year ago, while revenue grew to RM264.4mil from RM225.62mi. Lagenda said the earnings reflected the strong market appeal of its well-planned and affordable township developments. In a filing with Bursa Malaysia, the property developer said it had kicked off the current financial year on a strong footing, recording confirmed sales of RM251.9mil in 1Q25. This was driven by robust contributions from Lagenda Aman in Tapah, Perak; La'Indera in Kuantan, Pahang; and Puncak Warisan in Kota Tinggi, Johor. 'As of March 2025, unbilled sales stood at a healthy RM898.9mil, with outstanding bookings of RM268.8mil, offering strong revenue visibility for the coming quarters.' The company said it remains optimistic about its latest developments planned for the current financial year and is confident that upcoming launches will solidify the group's position for a bright future. 'In 1Q25, we also marked our entry into a sixth state through a land acquisition in Senawang, Negri Sembilan. 'These expansions reflect our confidence in the long-term prospects of these regions and the growing demand for affordable, well-designed housing. 'We remain confident that our unique value proposition – combining quality with affordability – will continue to resonate with a broad range of homebuyers.' Going forward, the property developer said it will remain focused on executing its pipeline of launches and maintaining a disciplined landbanking strategy, targeting affordable land in strategic locations. UOB Kay Hian Research noted that Lagenda has revised its launch target from 4,000 to 8,000 units in 2025, driven by continued demand for affordable housing. 'Looking ahead, we expect a 30% year-on-year sales growth in 2025, driven by higher project launches and better construction progress from its new townships.' However, the research house lowered its earnings estimates for 2025 to 2027 by 13% to 15%, citing lower margin assumptions due to higher initial construction costs for township developments. 'We maintain (our) 'buy' call with a lowered target price (TP) by 16% to RM1.78 (from RM2.13), as we factor in a higher revised net asset value (RNAV) discount of 40% (from 30%), due to a more conservative margin environment in 2025 to 2026.' Meanwhile, Philip Capital Research maintained its earnings forecast for Lagenda, given the satisfactory results. It kept its 'buy' call and RNAV-derived TP of RM1.75 per share, based on a 30% RNAV discount. 'We continue to like Lagenda for its niche focus on affordable housing and its attractive 6% dividend yield for 2025.' The research house added that key risks to its 'buy' call include higher building material prices and lower-than-expected property sales.
Malay Mail
29-04-2025
- Business
- Malay Mail
Nestle Malaysia defies lower 1Q profit, shares soar on festive demand boost
KUALA LUMPUR, April 29 — Nestle (Malaysia) Bhd shares soared in the morning trading session amid posting lower net profit for the first quarter (1Q) of 2025. At 10.16am, Nestle's share price strengthened by 50 sen to RM80.88, with 52,800 shares changing hands. In a filing with Bursa Malaysia, Nestle reported a lower net profit of RM161.34 million in the 1Q ended March 31, 2025, from RM195.51 million a year earlier, while revenue also declined to RM1.77 billion from RM1.78 billion previously. In a note, MIDF Amanah Investment Bank Bhd said Nestle's 1Q 2025 performance was in line with expectations, supported by festive-driven domestic sales recovery. 'However, margin pressure from elevated input costs and higher marketing expenses continued to weigh on earnings,' it said. Besides, Hong Leong Investment Bank Bhd (HLIB) also opined that Nestle's 1Q 2025 results were broadly within expectations, with a strong seasonal showing despite headwinds from weaker domestic sales and elevated commodity prices. 'While top-line growth was supported by festive demand and export gains, margin pressure persisted year-on-year,' it said in a separate note. Looking ahead, HLIB said Nestle remains challenged by geopolitical tensions, commodity volatility, and softer consumer sentiment, but continues to strengthen its environmental, social and governance initiatives. In addition, MIDF remained cautious on Nestle's outlook, given the prolonged impact of weak consumer sentiment and ongoing geopolitical uncertainties, which could continue to weigh on domestic sales. 'A full cost pass-through remains challenging in the near term, considering Nestle's strategic focus on offering better value to consumers to defend market share. 'While management expects sequential improvement from 2Q 2025 onwards, we believe that profit margins will likely remain under pressure as raw material prices remain elevated,' it added. — Bernama
New Straits Times
28-04-2025
- Business
- New Straits Times
Nestle Malaysia posts RM213mil net profit, RM1.77bil revenue in Q1
KUALA LUMPUR: Nestle (Malaysia) Bhd reported weaker earnings for the first quarter of the financial year 2025, attributed to higher marketing expenses earlier in the year and minimal price increases despite rising raw material costs. The food and beverages manufacturer recorded a net profit of RM213 million for the period, a 17.5 per cent decline from RM195.5 million a year ago, according to a bourse filing today. Revenue dipped slightly 0.8 per cent to RM1.77 billion from RM1.78 billion previously. The company said growth of export sales remains robust at 8.8 per cent while domestic sales are on a good path of recovery across categories which reflects the successful planning and execution during the festive periods. In a statement, Nestle Malaysia said it still focuses on ensuring the relevance of its brands and product offerings in an evolving marketplace throughout the quarter. It stated that the core products performed well, complemented by product innovations that have been positively received by consumers, helping to sustain solid market leadership positions. Nestle Malaysia chief executive officer Juan Aranols said that although the operating environment remains challenging, the company is encouraged by signs of improving consumer sentiment. "We are confident in returning to healthy growth levels by the first half of this year and consolidate the normalisation of our profitable and sustainable growth path. "We will continue to invest in product innovation and in enhancing our capabilities at all levels, including manufacturing, logistics and commercial, among others. Building on strong foundation in the nation, Aranols said Nestle Malaysia is confident on its outlook, while carefully monitoring global geopolitical and market developments that may affect broader economic conditions.
