29/05/2026

BIZ & FINANCE FRIDAY | MAY 29, 2026

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LGMS upbeat despite softer Q1 results KUALA LUMPUR: Mercury

o Cybersecurity demand, Antarex contribution and tighter regulations seen supporting growth through FY26 and FY27

It also reiterated its “buy” call on LGMS with a target price of 62 sen, based on a 23-times price-to earnings multiple applied to FY26 earnings per share of 2.7 sen. The research house remains optimistic on LGMS given its strong industry positioning as a recognised cybersecurity specialist in the Asia Pacific region. It added that LGMS’s inclusion in Gartner’s market guide and its track record in delivering high-margin services continue to support its competitive edge. “Strategic partnerships with global and regional players, alongside Mitsui’s 25% strategic stake, also provide opportunities for market access and overseas expansion,” it said. Key risks identified include rising competition, the labour-intensive nature of the business, the inability to secure public-sector contracts and high exposure to local clients.

Ebitda increased 19% year-on year to RM3.3 million, with Ebitda margin improving to 31%, in line with the firm’s assumptions. Mercury Securities said the stronger margin was mainly due to a more favourable service mix, led by higher contributions from the higher margin cyber threat and incident response segment. “PBT increased by 14% year-on year to RM3 million, while PBT margin improved to 27.5%, supported by a 200% increase in contribution from associates to RM57,000 following the completion of the Antarex Holdings acquisition. “Correspondingly, net profit rose 13% year-on-year to RM2 million, with profit-after-tax margin edging up to 20.2%, partly offset by a higher effective tax rate of 26.3%,” the firm said. Following the results, Mercury Securities maintained its FY26 and FY27 earnings forecasts.

Securities Sdn Bhd remains positive on the earnings outlook for LGMS Bhd over FY26 and FY27, despite the group’s first-quarter FY26 results coming in below expectations due to the lumpy nature of its project-based cybersecurity business. The research house said LGMS continues to be supported by contributions from Antarex Holdings following its acquisition this quarter, which is expected to provide an earnings buffer at the profit-before tax (PBT) level. Mercury Securities also pointed to a favourable industry outlook, driven by tighter regulatory requirements following the implementation of Malaysia’s Cyber Security Act 2024. The group is also expected to benefit from the commercialisation of its managed cybersecurity preventive solutions, stronger market recognition following its inclusion in the 2025 Gartner Market Guide for GEORGE TOWN: Penang Port recorded growth in cargo, cruise and ferry operations in the first quarter of 2026, with higher cargo volumes and cruise arrivals recorded during the January-March period. Penang Port Commission chairman Datuk Yeoh Soon Hin said cargo throughput rose 17.27% year-on-year to 8.55 million freight weight tonnes (FWT), compared with 7.29 million FWT recorded in the corresponding period last year. He said the increase was driven mainly by general cargo, containerised cargo and liquid bulk. Container handling rose 4.88% to 343,036 twenty-foot equivalent units (TEUs), up from 327,078 TEUs recorded in the same quarter last year. General cargo throughput increased 52.61%, while containerised cargo and liquid bulk rose 19.32% and 15.86% respectively. “We have seen increases in both Ű BY T.C. KHOR newsdesk@thesundaily.com

Revenue for the three-month period rose 13% year-on-year, in line with Mercury Securities’ expectations, mainly driven by stronger contributions from the cyber threat and incident response segment. Revenue from the segment surged 107% to RM1.4 million, supported by higher demand from clients in the financial and manufacturing sectors. The cyber risk prevention segment grew 6% to RM6.9 million, driven by stronger contributions from clients in the technology and manufacturing sectors, while cyber risk management and compliance revenue rose 4% to RM2.6 million, mainly from financial sector clients.

Digital Forensics and Incident Response Retainer Services, as well as growing adoption of artificial intelligence technologies amid rising AI-enabled cyber threats. LGMS’ Q1 FY26 core net profit accounted for 18% and 17% of Mercury Securities’ and consensus full-year estimates, respectively. The research house said this was broadly in line with expectations, noting that the first quarter historically contributes around 15% to 20% of full-year earnings. No dividend was declared during the quarter, consistent with the group’s practice of declaring dividends only in the fourth quarter. cargo and cruise activities amid shifting regional trade patterns,” Yeoh told theSun . He said US-China tensions were not significantly affecting cargo patterns through Penang Port at the moment. On cruise operations, Yeoh said the Swettenham Pier Cruise Terminal handled 372,903 passengers in the first quarter, a 39.55% increase year on-year, while cruise vessel calls rose to 201 calls from 46 calls recorded in the same period last year. “Penang Port is strengthening its position as a regional cruise hub,” he said. Yeoh said Royal Caribbean International’s Ovation of the Seas was among the main contributors to the increase in cruise passenger arrivals and vessel calls. “We expect more international cruise routes and vessel calls towards the end of the year,” he said. Meanwhile, ferry passenger movements rose 9.36% year-on-year to 810,053 passengers during the quarter.

Penang Port posts steady growth in cargo, cruise and ferry operations

Cargo throughput at Penang Port Commission rose 17.27% year-on-year, driven by growth in general cargo, containerised cargo and liquid bulk. – PENANG PORT WESBITE

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