LSH Capital
Lim Seong Hai Capital Bhd (LSH Capital) is a construction company with a secondary focus on property development and facilities management.
Lim Seong Hai Capital Bhd (LSH Capital) is a construction company with a secondary focus on property development and facilities management. The group differentiates itself from peers by its sector leading margins, low gearing and low reliance on subcontractors (~10%). Within construction, LSH Capital’s primary focus is infrastructure jobs. The group also has a 20-year concession to maintain and operate KL Tower and is pursuing highway concession opportunities as well.
About the stock
LSH Capital is named after the late Lim Seong Hai and is now co-owned and run by his four children. It is also seen as a breakaway from the Tan Sri Lim Kang Ho’s group of companies (including Ekovest), which have similar operating segments. LSH Capital was initially listed on the LEAP market in 2021 but has since been promoted to the ACE market in March 2025.
Investment thesis
LSH Capital has a relatively large funnel of construction orderbook and property development launches, compared with its current low-base. Additionally, the group’s peer-leading margins allows for meaningful translation of orderbook wins to earnings. We forecast earnings growth to +45% CAGR (FY27E). Looking ahead, this implies LSH Capital is trading at single-digit PER multiples on FY27E, which is well below sector average.
Key risks
- Family business - The four Lim siblings collectively control 61% of the company and have full management control. Only 50% of the board is independent.
- Related party transactions - The group has a history of RPT transactions, and injection of related businesses. As LSH Capital transitions to non-RPT work, it remains to be seen if margins will continue to hold up.
- Small balance sheet - Net tangible assets total only RM400m (excluding RM149 goodwill on consolidation. We anticipate risk of additional fund-raising if capital intensive projects are secured.
Stock information
LSH CAPITAL
LSH | 0351.KL
BUY
Target price: RM3.50
Last price: RM2.19
Market cap (RMm): RM1,836m
Shares out: 838m
52-week range: RM0.730 / RM2.56
3M ADV: RM5.36m
T12M returns: 164%
Share price performance
Investment fundamentals
| RMm | FY24A | FY25E | FY26E | FY27E |
|---|---|---|---|---|
| Revenue | 361 | 439 | 600 | 742 |
| Revenue Growth | 1% | 22% | 37% | 24% |
| EBITDA | 106 | 139 | 173 | 213 |
| EBITDA margin | 29% | 32% | 29% | 29% |
| Adj PATAMI | 74 | 103 | 140 | 225 |
| PATAMI margin | 21% | 23% | 23% | 30% |
| ROA | 12% | 12% | 14% | 17% |
| ROE | 16% | 19% | 22% | 28% |
| PER | 21.9 | 18.8 | 13.8 | 8.6 |
| P/BV | 3.4 | 3.6 | 3.0 | 2.4 |
| Yield | 1.0% | 1.0% | 2.0% | 3.0% |
Source: Company data, NewParadigm Research, November 2025
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