LSH Capital moves to Main Market as KL Tower lifts facilities revenue

KL TOWER, 9 OCTOBER 2026 —

Lim Seong Hai Capital Bhd (LSH Capital) completed its transfer to Bursa Malaysia’s Main Market on Thursday, October 8, marking a significant milestone in the construction group’s corporate trajectory.

The move was underpinned by a substantial surge in facilities management revenue, driven by the full-period contribution from its operations at the KL Tower.

The listing and quotation of the company’s entire issued share capital were officially transferred from the ACE Market with effect from 9am on October 8, signaling the group’s readiness to operate within the more stringent regulatory and disclosure frameworks of the Main Market.

The transfer encompasses 838.36 million ordinary shares, representing an issued share capital of RM447.51 million. Despite the change in market tier, the company remains classified under the Construction sector, and its stock short name, stock code, and ISIN code remain unchanged.

This structural continuity ensures that existing investors and market participants can track the stock without administrative disruption, while the elevation to the Main Market potentially broadens the investor base and enhances liquidity for the shares.

The financial impetus for the upgrade is clearly visible in the group’s recent performance. According to a Bursa Malaysia filing dated October 2, facilities management revenue rose sharply to RM52.68 million in the nine months ended June 30, 2026, a dramatic increase from RM12.86 million in the corresponding period of the previous year. This segment now accounts for 14.38% of the group’s total revenue, up from just 3.95% a year earlier.

The group attributed this growth primarily to the full-period contribution from the operation, management, and maintenance of the KL Tower, a landmark asset that has become a central pillar of its diversified revenue stream.

The operational timeline for the KL Tower concession highlights the rapid integration of this asset into the group’s portfolio. The 20-year concession commenced on April 1, 2025, with vacant possession delivered on April 19. Tower operations officially began on April 26, allowing the group to capture revenue for the majority of the financial period.

The concession is held through LSH Service Master Sdn Bhd, a vehicle in which the group’s wholly-owned subsidiary, LSH BEST Builders Sdn Bhd, holds a 70% stake. This structure allows LSH Capital to consolidate the significant cash flows generated by the tower’s operations while maintaining a clear corporate hierarchy.

Beyond the immediate financial benefits, the group is leveraging its control of the KL Tower to pursue further development opportunities. Bernama reported that non-independent non-executive chairman Tan Sri Lim Keng Cheng stated that the group had submitted a development order application for KL Tower Square to Kuala Lumpur City Hall for approval. Speaking after the Main Market transfer ceremony, Lim disclosed that RM70 million had been allocated for this project.

Construction is expected to begin in the first half of 2027, indicating a near-term pipeline of capital expenditure that will further integrate the tower with its surrounding urban environment.

The proposed KL Tower Square is designed to occupy an existing parking area along Jalan Raja Chulan, transforming underutilized space into a high-value commercial and public realm asset. In addition to the square, The Edge Malaysia reported that Lim expressed an aspiration for a cable car linking KL Tower with other tourist and heritage attractions.

However, he clarified that this ambitious infrastructure idea was outside the scope of the original tender proposal, suggesting it may be a future strategic consideration rather than an immediate contractual obligation.

Looking beyond the KL Tower, LSH Capital is positioning itself for broader participation in Malaysia’s infrastructure landscape. According to The Edge Malaysia, Lim said the group was looking to participate in larger infrastructure developments, including the MRT3 line, highways, parking facilities, and public transport infrastructure. This strategic pivot reflects a desire to diversify away from pure construction and property development into long-term asset management and infrastructure operation, sectors that offer more stable, recurring revenue streams.

The group’s overall financial performance for the nine months ended June 30, 2026, reflects this transition. Group revenue increased by 12.66% to RM366.44 million, up from RM325.25 million in the same period last year. However, profit attributable to owners fell to RM59.60 million from RM66.21 million. This divergence between revenue growth and profit decline is attributed to the mix of business activities and the specific timing of revenue recognition in the property development segment.

Construction revenue, a core competency of the group, rose to RM226.40 million from RM183.72 million, indicating strong demand for its building services. In contrast, property development revenue declined to RM87.36 million from RM128.66 million. The group attributed this decline mainly to lower revenue recognition from its LSH Segar project in Cheras as the development approached completion.

This dip was partly offset by the commencement of revenue recognition from Lake Side Homes in Sungai Besi, suggesting a steady pipeline of new projects entering the revenue stream.

A separate development in the group’s infrastructure portfolio was highlighted in the October 2 Bursa attachment. The Cabinet had agreed in principle on September 10 to the implementation of the proposed Bandar Malaysia–Seri Kembangan Expressway under a build-operate-transfer model. This project is proposed to be undertaken through LSH Pertama Makmur Infra Sdn Bhd, in which the group’s wholly-owned subsidiary, LSH Infra Sdn Bhd, holds a 50% stake.

The approval of this expressway represents a significant win for the group, providing a long-term asset that will contribute to its facilities and infrastructure revenue streams in the coming years.

LSH Capital’s journey to the Main Market has been a steady progression through Bursa Malaysia’s tiers. The company was first listed on the LEAP Market on July 30, 2021, before transferring to the ACE Market on March 21, 2025. The current move to the Main Market completes this upward trajectory, positioning LSH Capital as a more established player in the Malaysian capital markets.

With a diversified portfolio spanning construction, property development, and now significant infrastructure assets like the KL Tower and the proposed expressway, the group is well-positioned to navigate the evolving economic landscape. The combination of recurring revenue from tower operations and new infrastructure projects provides a balanced foundation for future growth, as the company continues to expand its footprint in both urban development and national infrastructure.

Related: Bursa Malaysia · Tan Sri Lim Keng Cheng · KL Tower