LHN Limited (SGX:41O) has received approval to transfer its listing to the SGX mainboard from Catalist, and will debut on 13 Dec. We remain positive on LHN’s growth strategy, but lower our FY24-25 core profit forecasts by ~14-16% to account for a higher-for-longer interest rate scenario.
- Read this at SGinvestors.io -
Core PATMI below expectations; declares final & special dividend
LHN's FY23 core PATMI of S$19m (excluding fair value loss and disposal gain) is lower than our/market expectations, mainly due to higher financing cost (~+80% y-o-y) and less contribution from JVs.
- Read this at SGinvestors.io -
Stable occupancy and rental for Coliwoo
LHN’s FY23 co-living revenue of S$28.3m is ~7% ahead of our estimate. This strong performance was driven by growth in the number of keys (+68% y-o-y) and higher average rental rates in FY23. Occupancy as of Sep’23 dipped to 94.7%, mainly due to new launches (vs. 96.7%/98% in 1H23/2H22).
We factor in a stable occupancy rate and rental rates, but expect co-living to continue to underpin growth, as LHN aims to add 800 keys each year.
Management expects to secure new tenders from Singapore Land Authority (SLA), and results may be announced as early as this month.
Expanding other income sources
Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
