- 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.
