2QFY26 - Property blip drives miss
Property segment decelerated as LSH Segar nears completion.
Stock information
LSH CAPITAL
LSH | 0351.KL
BUY
Target price: RM3.00
Last price: RM1.79
Market cap (RMm): RM1,501m
Shares out: 838m
52-week range: RM0.770 / RM2.56
3M ADV: RM1.24m
T12M returns: 126%
Disclaimer: By using this information, you hereby acknowledge that you are fully and solely responsible for evaluating the merits and risks of any investment decision and agree not to hold NewParadigm Research fully liable whatsoever for any actions, omissions and/or damages of any kind or matter arising from such decision.
Key takeaways
- 2QFY26 (ended-March) Adj NP decelerated to RM21m (-24% QoQ, -13% YoY), falling behind ours/consensus expectations.
- Project timing for property segment drove the drag, but EBITDA margins rebounded to 36% in the quarter.
- We place our recomendation under review pending the management briefing on Monday morning (25 May).
Share price performance
Investment fundamentals
| RMm | FY25E | FY26E | FY27E | FY28E |
|---|---|---|---|---|
| Revenue | 461 | 656 | 807 | 906 |
| Revenue Growth | 27% | 42% | 23% | 12% |
| EBITDA | 148 | 199 | 238 | 241 |
| EBITDA margin | 32% | 30% | 29% | 27% |
| Adj PATAMI | 108 | 140 | 225 | 226 |
| Adj NP margin | 23% | 21% | 26% | 26% |
| ROA | 12% | 12% | 14% | 15% |
| ROE | 16% | 18% | 23% | 22% |
| PER | 13.9 | 10.8 | 7.3 | 6.3 |
| P/BV | 2.3 | 2.0 | 1.6 | 1.4 |
| Yield | 2% | 3% | 4% | 5% |
Source: Company data, NewParadigm Research, May 2026
Project timing drove deceleration
- LSH’s 1QFY26 (ended-March) revenue decelerated (-33% QoQ, +11% YoY), driven by the property segment (-61% QoQ, -72% YoY) to RM13m revenue. This is due to primary property project - LSH Segar - nearing completion.
- This deceleration should be mitigated going forward with the Like Side Homes project (RM1.15bn GDV), that was just launched in February.
- Excluding the property segment, EBITDA would have otherwise expanded by +35% QoQ, driven by the construction segment (+60% QoQ).
Results snapshot
Pending post-results briefing
- We place LSH under review pending updates from management’s post-result briefing.
