KUALA LUMPUR: LGMS Berhad is embarking on a proposed share buyback exercise, subject to shareholder approval at its upcoming annual general meeting.
In a statement to Bursa Malaysia last Tuesday, the company said that it intends to seek shareholders’ approval for a proposed share buyback authority at its forthcoming Fifth Annual General Meeting.
Companies typically undertake share buybacks as a means of returning value to shareholders, supporting share price stability and signalling confidence in the company’s underlying fundamentals. Such exercises may also enhance earnings per share by reducing the number of shares in circulation, while providing flexibility for treasury share utilisation.
Earlier this year, LGMS was transferred from the ACE Market to the Main Market of Bursa Malaysia, reflecting the company’s stronger financial standing, operating track record and growing maturity as a listed cybersecurity player.
The proposed buyback also comes against the backdrop of a balance sheet that remains solid. As at Dec 31, 2025, LGMS reported cash and cash equivalents of RM74.15 million, up from a year earlier, while total assets stood at RM114.81 million.
At the same time, the company’s total liabilities were relatively low at RM12.51 million, comprising RM12.02 million in current liabilities and just RM0.49 million in non-current liabilities. LGMS’ gearing ratio remained effectively at zero, underscoring its net cash position and lack of meaningful debt burden.
LGMS’ retained earnings stood at RM56.70 million at end-2025, providing further support for its capital position. The group’s cash-rich and low-debt balance sheet gives it room to pursue shareholder-friendly measures while still funding expansion.
Operationally, the group remained profitable in FY2025, posting revenue of RM43.91 million, operating profit of RM12.87 million and profit after tax of RM10.22 million. In the past calendar year, LGMS also deliberately strengthened its professional workforce, infrastructure and capital market positioning to support future growth.
Its headcount also continued to expand, rising to 158 employees in 2025 from 149 in 2024 and 118 in 2023, reflecting continued investment in technical and delivery capacity. LGMS has also pointed to a strategic shift towards higher-margin recurring models and subscription-based services as part of efforts to improve earnings quality over time.
Kenanga Research has a target price of RM0.73 for LGMS. The company closed at RM0.52 on April 15, 2026, giving the company a potential upside of some 40%.
Source: LGMS Berhad
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