Lim Seong Hai Capital's 1Q net profit up 19%

• LSH Capital declared an interim single-tier dividend of 0.67 sen per share, payable on April 18.

KUALA LUMPUR (March 19): Lim Seong Hai Capital Bhd (KL:LSH), which is set to make its debut on the ACE Market this Friday, said its net profit for the first quarter ended Dec 31, 2025 (1QFY2025) rose 19% to RM18.5 million from RM15.5 million a year earlier, lifted by higher gross profit from construction works in Tangkak.

This resulted in earnings per share improving to 2.62 sen from 2.20 sen, the property developer and construction company said in a filing to the local bourse on Wednesday.

LSH Capital declared an interim single-tier dividend of 0.67 sen per share, payable on April 18.

Quarterly revenue edged up 5% to RM96.8 million from RM92.2 million in 1QFY2024, supported by a 37.31% or RM9.1 million increase in its property development segment, primarily from the LSH Segar project.

However, this was partially offset by a 7.21% or RM4.89 million decline in construction revenue following the completion of the LSH 33 project in June 2024.

Gross profit increased by 11.33% year-on-year (y-o-y) to RM34.88 million from RM31.33 million, driven by significant progress in the LSH Segar project.

The overall gross profit margin for the quarter improved to 36.04% from 33.98%, mainly due to the high-margin Tangkak project, where costs were negotiated upfront and subcontractor expenses were efficiently managed.

However, the property development segment’s margin declined slightly to 39.82% from 43.22% due to a larger proportion of architectural works, which typically yield lower margins.

Looking ahead, LSH Capital aims to expand its construction and engineering order book, which currently comprises 16 ongoing projects worth RM1.52 billion as of Jan 31, 2025, expected to generate revenue progressively until FY2030.

The group plans to actively bid for new projects and explore infrastructure concession opportunities for recurring income.

Additionally, it intends to complete existing development projects, including LSH Segar and Lake Side Homes, which have a combined gross development value (GDV) of RM1.55 billion.

LSH Capital also recently secured a concession agreement with the federal government to operate and maintain Kuala Lumpur Tower.

This will enable the group to monetise the tower’s tourism and broadcasting potential while expanding into facility management as a steady income stream, the company noted.

Shares in LSH Capital have been suspended at 84.5 sen since March 7 on the LEAP Market, pending the completion of its transfer to the ACE Market.

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