LHN Limited - Maybank Research 2024-03-08: Boost From 2 MOH Contracts; Growing Its Portfolio

LHN Limited - Boost From 2 MOH Contracts; Growing Its Portfolio

LHN (SGX:41O) | SGinvestors.ioLHN (SGX:41O)
  • We attended LHN (SGX:41O)’s briefing yesterday following the release of its 1Q24 business update on 26 Feb 2024. Total number of keys grew by 89 to 2,153 in 1Q24, while two Ministry of Health (MOH) contract wins in Jan 2024 will add at least 350 rooms to its portfolio.

Strong occupancies for its co-living assets

  • - Read this at SGinvestors.io -
  • Co-living room rates are holding up despite a slower local rental market, with hotels benefitting from the surge pricing during major events and serviced residences lending stability.
  • LHN has secured MOH contracts to operate two lodging facilities for 700 nursing professionals. The two contracts will add at least 350 keys to the portfolio. Both leases are likely to commence in 2H24 upon renovation.

Other segments are actively expanding

  • - Read this at SGinvestors.io -
  • We also see incremental increase from the carpark service segment, with 2 projects (over 800 lots) added to its Hong Kong business.
  • Additionally, LHN secured 24 new facility management contracts. Management sees stable performance for the industrial and commercial segments.
  • Building on its renewable energy portfolio, its energy subsidiary recently won seven new solar energy contracts with 1.7-megawatt combined capacity.

Expect capital recycling to continue in 2024

  • Read more at SGinvestors.io.

Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.

Li Jialin Maybank Research | Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2024-03-08

Read also Maybank's most recent report:
2024-05-16 LHN Limited - Co-living To Drive Growth; Core Profit Above Estimates.

Previous report by Maybank:
2024-04-11 LHN - Expanding Co-living Capacity.

Price targets by 2 other brokers at LHN Target Prices.

Listing of research reports at LHN Analyst Reports.

Relevant links:
LHN Share Price History,
LHN Announcements,
LHN Dividends & Corporate Actions,
LHN News Articles


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