Fund Manager Summary
The fund managers believe that the outlook for LGI Ltd is promising, driven by its recent strong revenue and earnings growth. In their opinion, the company is well-positioned to capitalize on opportunities by recovering more gas through additional landfill agreements and investing in battery technology to manage the volatile Australian electricity market. With electricity prices experiencing significant fluctuations due to the transition from coal to renewables, LGI's strategy to integrate battery systems is crucial for maximizing revenue potential. The successful results from the Bunya Battery Project, which achieved revenues 77% above benchmark prices, further reinforce their positive outlook. Overall, they consider LGI to be attractively priced given its potential for high growth.
Source: Trading View
Commentary From The Managers
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Perpetual Asset Management
31 Oct 2025
$4.45
Summary
- LGI Limited contributed strongly to fund performance in October, rallying 16.7%.
- LGI assists both private and municipal landfill operators manage methane emissions by transforming these gases into electricity.
- Electricity generated supplies the landfill, local community assets, and the Australian wholesale electricity market.
- In conjunction with electricity generation, LGI is investing in batteries to leverage volatility in the electricity market.
- In late October, LGI raised additional capital to expedite the roll-out of battery and generation projects.
- These efforts aim to increase megawatts under management to 80MW from 21MW.
- New projects are expected to roughly double LGI's battery capacity.
- This battery investment aligns with a forecast for a more volatile energy market.
- LGI has achieved a 72.6% uplift on prices received at existing sites.
- Perpetual Asset Management invested in LGI at the IPO in August 2022 at $1.50.
- The stock closed October at $4.45, reflecting strong performance.
- Perpetual Asset Management remains optimistic about long-term opportunities in LGI.
- The company has a well-positioned, cash-generative portfolio with capacity for further capital deployment.
- Perpetual Asset Management views the management team and board positively, confident in their ability to identify and execute attractive opportunities.
- Discipline in capital allocation is emphasized as a key strategy moving forward.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Perpetual Asset Management
31 Oct 2025
$4.45
- LGI Limited contributed strongly to fund performance in October, rallying 16.7%.
- LGI assists both private and municipal landfill operators manage methane emissions by transforming these gases into electricity.
- Electricity generated supplies the landfill, local community assets, and the Australian wholesale electricity market.
- In conjunction with electricity generation, LGI is investing in batteries to leverage volatility in the electricity market.
- In late October, LGI raised additional capital to expedite the roll-out of battery and generation projects.
- These efforts aim to increase megawatts under management to 80MW from 21MW.
- New projects are expected to roughly double LGI's battery capacity.
- This battery investment aligns with a forecast for a more volatile energy market.
- LGI has achieved a 72.6% uplift on prices received at existing sites.
- Perpetual Asset Management invested in LGI at the IPO in August 2022 at $1.50.
- The stock closed October at $4.45, reflecting strong performance.
- Perpetual Asset Management remains optimistic about long-term opportunities in LGI.
- The company has a well-positioned, cash-generative portfolio with capacity for further capital deployment.
- Perpetual Asset Management views the management team and board positively, confident in their ability to identify and execute attractive opportunities.
- Discipline in capital allocation is emphasized as a key strategy moving forward.
Summary
Contract Asset Management
30 June 2024
$3.00
- Contract Asset Management notes that LGI has experienced strong revenue and earnings growth in recent years.
- LGI operates a high margin business, leading to optimism about its growth prospects.
- The company is expected to recover more gas by signing additional landfills across the country.
- LGI is investing in batteries for more sites to capitalize on volatile electricity prices.
- Australia has the most volatile electricity prices globally, increasing due to the shift from coal to renewables.
- LGI's strategy of combining electricity generation with batteries positions it well to maximize revenue.
- The Bunya Battery Project has shown promising results, with revenue 77% above benchmark prices.
- Contract Asset Management considers LGI to be attractively priced given its potential for high growth.
Summary
Contract Asset Management
31 Mar 2024
$2.65
- Contract Asset Management established a small position in LGI Limited (LGI) in March.
- LGI is a profitable green energy producer converting methane from landfill into energy.
- Founded in 2009, LGI is a founder-led business.
- Revenue is generated through:
- Energy supply to the National Electricity Market (NEM).
- Creation and sale of ACCUs (Australian Carbon Credit Units).
- In recent years, LGI has seen strong revenue and earnings growth.
- It operates as a high margin business, with optimistic growth prospects.
- Expectations for LGI include recovering more gas by signing additional landfills across the country.
- LGI is investing in adding batteries to more sites to leverage electricity price fluctuations.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"With LGI's strategic shift towards battery integration and landfill partnerships, it seems poised to capitalize on the volatile Australian electricity market. At approximately $3.00, the potential for high growth appears compelling, especially as the Bunya Battery Project hints at lucrative returns."
Last Updated: 31 Oct 2025
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Frequently Asked Questions
Who is investing in Lgi Ltd (ASX:LGI)?
Fund managers including Contract Asset Management and Perpetual Asset Management have invested in Lgi Ltd (ASX:LGI).
Why do fund managers invest in Lgi Ltd?
Fund managers are investing in Lgi Ltd due to its strong revenue and earnings growth, high profit margins, and promising growth prospects. The company is strategically expanding its gas recovery operations by partnering with additional landfills and investing in battery technology to capitalize on volatile electricity prices in Australia. The successful Bunya Battery Project demonstrates Lgi's potential for maximizing revenue through innovative energy solutions, positioning it as an attractive investment opportunity.
What happened to Lgi Ltd (ASX:LGI)?
Fund managers have invested in LGI Ltd due to its strong performance and strategic position in the renewable energy sector. The company effectively manages methane emissions from landfills, converting them into electricity, which supports both local communities and the Australian electricity market. With plans to expand battery capacity significantly and capitalize on a volatile energy market, LGI is well-positioned for growth. Fund managers appreciate its cash-generative portfolio and disciplined capital allocation, fostering confidence in the management team's ability to identify and pursue attractive investment opportunities.