Future Plans for Growth:

  • Strengthening its position as a construction and engineering player

As of the latest practicable date, the Company’s orderbook stood at RM1.52bn, expected to be recognized progressively until 2030. Besides this, the Company plans to allocate c.RM108.9m for working capital, leveraging its construction and engineering expertise to maintain a healthy job replenishment through tendering activities or its BEST Collaboration Framework.

  • Strengthening its position as property developers

Its new business segment, property development, which saw a substantial growth of 419.4% in just over a year, driven by the LSH Segar Project and Lake Side Homes project; having an estimated GDV of c.RM1.5bn and are expected to generate revenue progressively until FYE 2030. Riding on this momentum, the Company aims to expand its property development projects by identifying new landbanks or development opportunities.

  • Venturing into facility management services segment

Moving forward, the Company plans to establish a new business segment—facility management services—which will include (i) operational management, (ii) maintenance services, (iii) housekeeping and cleaning, (iv) security and surveillance monitoring, (v) health and safety compliance, and (vi) landscaping. Having recently secured contracts to manage the facilities of Kuala Lumpur Tower and Blue Pool, we believe this business segment will provide a steady revenue stream while also complementing the Company's property development business.

M+ Fair Value

We assign a fair value of RM1.60 per share for LSH, representing an 81.8% upside from the IPO price of RM0.88. This valuation is based on P/E ratio of 16x, pegged to the midFY26F EPS of 10.0 sen. We believe the valuation is fair as compared to its peers’ forward and historical P/E peers of 15.5-20.7x. However, we do not rule out the possibilities that an upward rerating catalyst for LSH given its (i) strong order book coverage, (ii) solid net profit margins, and (iii) new business segment expected to drive additional revenue growth.