LHN (SGX:41O) reported 1H FY24 core net profit of S$13m, ahead of our/street expectation at 56%/58% of MIBG/consensus full year estimate. Notably, Coliwoo’s occupancy in Mar 2024 held up at 91.8%, while rental rates remain stable.
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Coliwoo business underpins group revenue
LHN's group revenue increased by 9% h-o-h and 27% y-o-y, excluding the discontinued logistics operation. Revenue from Coliwoo increased by 13%/91% h-o-h/ y-o-y, partially offsetting the gap from disposing Logistics Group.
Newly opened 404 Pasir Panjang, 99 Rangoon Road and 298 River Valley Road contributed to the increased revenue.
In 2QFY24, management added 381 keys to its Coliwoo brand, bringing the total keys under Coliwoo brand to 2534.
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Incremental upsides from ancillary services
While commercial space revenue dipped marginally, industrial segment saw improving revenue (8% h-o-h) led by higher renewal rates for its sub-leases. Facilities management revenue inched up in 1HFY24 as new contracts secured in 4QFY23 ramp up.
LHN's management intends to further build up its seasonal parking user base for carparks in HK. Additionally, solar services continue to drive performance for its energy segment.
Adding more capacity in the pipeline
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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/.
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