LSH CAPITAL: FAST-TRACKING TO THE MAIN MARKET, AND THE NUMBERS EXPLAIN WHY

LSH Capital has proposed to transfer its listing from the ACE Market to Bursa Malaysia’s Main Market in the second half of 2026, with the exercise targeted for completion by end-2026, subject to the necessary approvals.

What caught my attention is that LSH is applying through the accelerated transfer process.

In simple terms, this is not a shortcut for just any ACE Market company. It is a faster route reserved for larger companies that have already built the profits, financial strength and track record expected of a Main Market company.

To use this route, a company must have been listed on the ACE Market for at least 12 months, maintain a daily market capitalisation of at least RM1 billion for the preceding six months and meet the Main Market profit requirements. It must also have positive operating cash flow for the past three audited financial years, sufficient working capital, no accumulated losses and clean audited accounts.

LSH did not just meet the profit requirements. It passed them by a wide margin.

For the latest three financial years, LSH recorded total profit after tax of RM238.53 million, compared with the minimum requirement of RM30 million. That is almost eight times the required amount.

For its latest financial year, LSH recorded profit after tax of RM102.09 million, compared with the minimum requirement of RM15 million. That is around 6.8 times the required amount.

Put another way, LSH’s profit for its latest year alone was already more than three times the minimum three-year profit requirement.

Its financial position also appears comfortable. Based on its latest audited figures, LSH had current assets of RM645.42 million against current liabilities of RM179.92 million. This gives a current ratio of around 3.59 times, meaning it had about RM3.59 of short-term assets for every RM1 of short-term liabilities. Its market capitalisation had also remained above the required RM1 billion level since September 2025.

So, what would the transfer actually mean for investors?

One practical difference is that some institutional funds are restricted by their mandates from investing in ACE Market companies. Moving to the Main Market removes that barrier and allows LSH to enter a larger investable universe. It does not guarantee that funds will buy the shares, but it gives the company a better chance of being screened, researched and considered by institutional investors. The accelerated framework itself was introduced to give larger, qualified ACE companies greater access to both local and foreign institutional investors.

Main Market status may also change how investors compare LSH. Instead of being viewed mainly as an emerging ACE Market company, it can increasingly be assessed alongside more established construction and property-related counters based on earnings, order book, cash flow, dividends and valuation. Better market recognition may support stronger price discovery over time, although the company must still continue delivering results.

What makes this move more interesting is the speed of LSH’s progress. The company only transferred from the LEAP Market to the ACE Market in March 2025. Around 16 months later, it is already qualified to apply for the accelerated route to the Main Market.

A Main Market transfer by itself does not suddenly create more profit, and approval is still pending. But qualifying for the accelerated route says something about what LSH has already achieved. The company has built sufficient earnings, size, operating history and financial strength to pass requirements that most ACE Market companies would need time to reach.

This is not an upgrade that is easily achieved. LSH’s numbers earned it the opportunity, which is why this is one counter that may deserve a closer look rather than being viewed as just another ACE Market construction stock.