PETALING JAYA: Gold Li Holdings Bhd’s net profit is expected to rise to RM12.7mil in financial year 2027 (FY27) and RM14.3mil in FY28.
This implies a net margin of 13.6% and 13.3% respectively, said TA Research.
The research unit assumes margin moderation to reflect rising development costs and its commencement of new projects, namely, Gold Li’s first high-rise project in Muar.
Overall, TA Research forecasts imply a five-year revenue and net profit compounded annual growth rate (CAGR) of 25.1% and 20.5% respectively over FY23 to FY28.
Gold Li is valued at 6.7 times annualised FY26 price-to-earnings ratio (PER) and 0.6 time pro forma price to book value.
TA Research values the stock at 13 sen a share, pegged to 0.5 times FY27 price-to-book value, broadly in line with small-cap developer peers under its coverage.
Meanwhile, its implied 6.1 times FY27 PER for the counter also appears undemanding.
Gold Li is a Johor-based property developer that is looking to raise RM15.21mil from its upcoming initial public offering (IPO) exercise, with the issue price fixed at 13 sen per share. It is slated to be listed on the ACE Market of Bursa Malaysia.
TA Research views the IPO price as fair, given Gold Li’s small market capitalisation, localised exposure and relatively modest future gross development value pipeline.
The research house believes the re-rating catalysts would likely require stronger sales traction, clearer landbank replenishment or successful execution of the group’s first high-rise project.
Gold Li’s revenue increased from RM35mil in FY23 to RM65mil in FY25, representing a two-year CAGR of 36.2%.
The growth was mainly driven by higher revenue recognition from development projects as construction progress advanced.
Profit after tax also rose from RM5.6mil in FY23 to RM7.8mil in FY25, translating into a two-year CAGR of 17.9%. However, profitability did not grow at the same pace as revenue.
Gross profit margin declined from 36.1% in FY23 to 30.6% in FY24 and 26.5% in FY25, while profit after tax margin moderated from 16.1% in FY23 to 12.1% in FY25.
The margin compression was mainly due to lower margins from completed developments, temporary outsourcing of certain construction works as a result of labour constraints, a RM1.3mil land write-down and contribution from lower-margin construction services.
Gold Li has built an established presence across Muar, Tangkak and Batu Pahat.
