L&G set for earnings rebound on strong development pipeline

KUALA LUMPUR: Land & General Bhd (L&G) is entering a phase of strong earnings recovery, supported by higher property progress billings and a solid development pipeline, according to TA Securities.

The research firm said that L&G has three new launches lined up for the financial year ending FY27, with a combined gross development value (GDV) of RM930 million.

A key focus is the Kerling industrial land in Hulu Selangor, a 1,012-hectare (ha) site undergoing rezoning to industrial use. The first phase, spanning 97.1ha and carrying an estimated gross development value of M1.5 billion, is planned for launch by year-end, with early interest from manufacturers and data centre players.

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TA Securities estimates the land's value could rise from 44 sen per square foot (psf) to about RM20 psf after rezoning, supported by strong industrial demand in Selangor.

Operationally, L&G's earnings momentum has strengthened significantly. Core profit rose 280.5 per cent year-on-year to RM38 million in nine months of FY26 (9M FY26), already above recent full-year levels. Revenue grew 141.7 per cent to RM348.3 million, while margins improved to 16 per cent from 11 per cent.

The research house said earnings visibility remains solid, backed by RM637 million in unbilled sales, with about 80 per cent expected to be recognised in FY27.


Looking ahead, it expects earnings growth to continue into FY27 before Kerling contributes meaningfully from FY28, with profit forecast at RM52 million to RM83 million over FY26 to FY28 versus RM29.5 million in FY25.

L&G also has RM8.5 billion in undeveloped GDV and a low gearing level of 2.5 per cent as of the third quarter of FY26.

Meanwhile, its education division continues to provide steady income, contributing 10 per cent of revenue and 23 per cent of operating profit.

TA Securities values L&G at 20 sen per share, based on 0.5 times book value, noting FY26 could be an inflection point driven by stronger earnings visibility and asset re-rating potential.