LHN (SGX:41O)'s 1H23 earnings was within expectations. Revenue and adjusted PATMI were 45%/48% of our FY23e forecasts. 1H23 adjusted PATMI declined 11% y-o-y to S$14.1mil due to the completion of a worker dormitory contract in May 22.
- Read this at SGinvestors.io -
LHN's 2H23e earnings growth will be supported by additional 516 keys of co-living capacity; and expansion of 2,800 car park lots. Meanwhile, FY24e will benefit from commencement of a new ISO Tank Depot; launch of food factory development project.
Our FY23e earnings forecast for LHN is unchanged. We maintain a BUY on LHN with an unchanged target price of S$0.47.
The Positive
Growth in co-living and car park.
- Read this at SGinvestors.io -
The 411 key Coliwoo Orchard started only in Feb 23. And contribution in 1H23 has been minimal.
Car park revenue rose on the back of increased volumes. This was despite the number of car parks remaining flat at 74 (or ~21,500 vehicle parking lots).
The Negative
Higher interest expense due to expansion.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
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