Latest news with #LGMSBerhad
Yahoo
02-07-2025
- Business
- Yahoo
LGMS Berhad's (KLSE:LGMS) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
LGMS Berhad (KLSE:LGMS) has had a rough week with its share price down 3.2%. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Specifically, we decided to study LGMS Berhad's ROE in this article. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for LGMS Berhad is: 12% = RM12m ÷ RM96m (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.12 in profit. View our latest analysis for LGMS Berhad We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. At first glance, LGMS Berhad seems to have a decent ROE. And on comparing with the industry, we found that the the average industry ROE is similar at 12%. Consequently, this likely laid the ground for the decent growth of 7.7% seen over the past five years by LGMS Berhad. As a next step, we compared LGMS Berhad's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 30% in the same period. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about LGMS Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. While LGMS Berhad has a three-year median payout ratio of 51% (which means it retains 49% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow. Along with seeing a growth in earnings, LGMS Berhad only recently started paying dividends. Its quite possible that the company was looking to impress its shareholders. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 30% over the next three years. Regardless, the ROE is not expected to change much for the company despite the lower expected payout ratio. Overall, we feel that LGMS Berhad certainly does have some positive factors to consider. Its earnings growth is decent, and the high ROE does contribute to that growth. However, investors could have benefitted even more from the high ROE, had the company been reinvesting more of its earnings. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
BusinessToday
25-05-2025
- Business
- BusinessToday
LGMS Solidifies Position As Gold Standard In Cybersecurity
Independent cybersecurity specialist LGMS Berhad is stepping up its game in the fast-evolving digital threat landscape, following a series of strategic moves that enhance its domestic and global market reach. Unlike many cybersecurity firms that bundle software or hardware sales with services, LGMS remains impartial by providing advisory and testing services without reselling third-party products. Its core offerings span cybersecurity assessments, penetration testing, risk management, compliance, and incident response. StarSentry: Boosting SME Cyber Defence In 2024, LGMS introduced StarSentry , a plug-and-play cybersecurity tool specifically developed for SMEs. After two years of in-house research and development, the tool enables smaller businesses to perform automated security checks without needing on-site consultants. The bundled service includes unlimited scans, consulting support, and software licensing — a model that reduces dependency on manpower while maintaining service quality. Since its launch, StarSentry has led to a 20% increase in SME inquiries and was recognised as the 'Cybersecurity Product Innovation of the Year' at the 2024 Malaysia Cybersecurity Awards. Mitsui Partnership Fuels Global Expansion LGMS's global ambitions received a major boost in April 2023 when Japan's Mitsui & Co. Ltd acquired a 25% stake in the company. This partnership has expanded LGMS's footprint to international markets including Japan, Singapore, Vietnam, and New Zealand. Overseas revenue now accounts for 22.3% of total revenue as of 1Q25, up from 16% in FY24. This expansion is key to diversifying geographical risk and strengthening the company's global competitiveness, particularly in a market increasingly focused on cybersecurity resilience. Riding the Wave of Rising Cyber Threats With Malaysia recording an average of 74,000 cyberattacks per day in 2023 and a total of RM1.22 billion in losses due to cybercrime, demand for LGMS's services has surged. Cyber threats like phishing, ransomware, and zero-day exploits continue to grow in tandem with Malaysia's rising internet penetration — projected to hit 36.8 million users by 2029. According to market research firm MarkNtel, the country's cybersecurity market is set to grow from USD1.05 billion in 2023 to USD2.17 billion by 2030, driven by e-commerce expansion and increasing digitisation across sectors. Solid Industry Credentials and Compliance Strength LGMS holds a slew of prestigious international certifications, including ISO/IEC 27001, CREST, TÜV TRUST IT, and critical Payment Card Industry (PCI) credentials such as PCI QSA and PCI 3DS Assessor. The company is also an authorised training provider for PECB and Mile2, further solidifying its standing as a trusted service provider. This compliance pedigree has helped LGMS win contracts with Malaysia's 11 Critical National Information Infrastructure (CNII) sectors, where demand rose by 30% in 2024 alone. Balancing Growth with Operational Expansion Despite posting a 12% YoY increase in revenue to RM9.6 million in 1Q25, LGMS saw a 20.9% drop in net profit to RM1.9 million, primarily due to increased employee costs from workforce expansion. However, this strategic investment in talent is expected to boost long-term service delivery and scalability. With strong fundamentals, international backing, and innovation-led offerings like StarSentry, LGMS is positioning itself as a key cybersecurity player ready to ride the wave of digital transformation — both in Malaysia and globally. Related
Yahoo
18-04-2025
- Business
- Yahoo
There Are Reasons To Feel Uneasy About LGMS Berhad's (KLSE:LGMS) Returns On Capital
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. Having said that, from a first glance at LGMS Berhad (KLSE:LGMS) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. Our free stock report includes 2 warning signs investors should be aware of before investing in LGMS Berhad. Read for free now. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on LGMS Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.17 = RM16m ÷ (RM106m - RM11m) (Based on the trailing twelve months to December 2024). Therefore, LGMS Berhad has an ROCE of 17%. In absolute terms, that's a satisfactory return, but compared to the IT industry average of 13% it's much better. View our latest analysis for LGMS Berhad Above you can see how the current ROCE for LGMS Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for LGMS Berhad . On the surface, the trend of ROCE at LGMS Berhad doesn't inspire confidence. Around five years ago the returns on capital were 38%, but since then they've fallen to 17%. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run. Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for LGMS Berhad. These growth trends haven't led to growth returns though, since the stock has fallen 17% over the last year. So we think it'd be worthwhile to look further into this stock given the trends look encouraging. Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 2 warning signs for LGMS Berhad (of which 1 makes us a bit uncomfortable!) that you should know about. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
27-02-2025
- Business
- Yahoo
LGMS Berhad Full Year 2024 Earnings: EPS: RM0.027 (vs RM0.025 in FY 2023)
Revenue: RM46.5m (up 31% from FY 2023). Net income: RM12.3m (up 10.0% from FY 2023). Profit margin: 27% (down from 32% in FY 2023). The decrease in margin was driven by higher expenses. EPS: RM0.027 (up from RM0.025 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the IT industry in Asia. Performance of the market in Malaysia. The company's shares are down 3.7% from a week ago. You should always think about risks. Case in point, we've spotted 1 warning sign for LGMS Berhad you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
