LB ALUMINIUM BHD (LBALUM)

LB Aluminium Bhd — Two Engines, One Company

Many investors know LB Aluminium (LBALUM, 9326) purely as an aluminium company. In reality, the business now runs on two distinct growth engines — a decades-old aluminium extrusion operation, and a property development segment that has now become the dominant profit driver.

Brief History

Founded in 1985 and listed on Bursa Malaysia in 1994, LB Aluminium has more than 39 years of operating history. The company has demonstrated resilience through multiple economic cycles — the 1997/98 Asian Financial Crisis, the 2008/09 Global Financial Crisis, and the COVID-19 pandemic.

Segment 1: Aluminium Extrusion

LB Aluminium is Malaysia's largest aluminium extrusion manufacturer. Its product portfolio includes:

• Architectural aluminium profiles for construction (windows, doors, curtain walls)
• Industrial profiles for automotive and manufacturing sectors
• DIY aluminium products for the retail market

While aluminium segment revenue edged lower (-4.5% YoY), profit actually grew +31% — reflecting better cost discipline and a higher-value product mix.

Segment 2: Property — Platinum South Valley (PSV)

This is the real story behind LBALUM's recent earnings surge. The Platinum South Valley (PSV) projects in Kuala Lumpur have become the dominant profit contributor:

PSV 2, still under construction, will continue driving revenue recognition throughout FY2026 and into FY2027.

Shariah-Compliant Status ✅

LBALUM is a Shariah-compliant stock — suitable for investors who prioritize Halal investments.

Recent Expansion

In October 2025, LB Aluminium acquired an industrial property in Banting, Selangor for RM22 million — a strategic move that could support capacity expansion or future property development initiatives.

Geographic Footprint

Headquartered in Shah Alam, Selangor, with manufacturing operations in Simpang Renggam, Johor, and property projects in Kuala Lumpur.

Net profit for 1Q FY2027 (three months to 31 July 2026) was RM18.6 million, up 60% from RM11.6 million a year ago. Revenue rose 17.9% to RM318.8 million from RM270.43 million. The aluminium segment contributed RM230.77 million (up 16.5% on higher sales volume and average selling price) and property RM88.03 million (up 21.8%, from the Platinum South Valley project in Bandar Tasik Selatan). No dividend was declared for the quarter.

*1Q FY2027 EPS is our own calculation (RM18.6 million divided by about 434.9 million shares), not a reported figure. Other quarters come from our quarterly results database and press reports.

For the full FY2026, net profit rose 52.74% to RM55.47 million from RM36.32 million, even though revenue fell 2.5% to RM1.04 billion. Aluminium made up 61.5% of revenue and property 38.5%.

LB Aluminium declared no dividend for 1Q FY2027. The latest dividend is the proposed first and final 2.5 sen per share for FY2026 (year ended 30 April 2026), a total payout of RM10.87 million. At RM0.49 that is a yield of about 5.1%. The FY2025 dividend was also 2.5 sen per our quarterly data.

The FY2026 payout ratio is only about 19.6% of the RM55.47 million net profit. That is low, so there is room for a larger dividend. But the company has not shown a pattern of raising dividends in line with profit, so you should not assume an increase is coming.