LHN (SGX:41O)'s 1H24 revenue was within expectations, but earnings exceeded. Revenue and adjusted PATMI were 51%/65% of our FY24e forecast, respectively. Margins for co-living were higher than expected due to the high occupancy and room rates.
- Read this at SGinvestors.io -
Coliwoo has also started to manage 3rd party properties. LHN targets to grow co-living by 800 keys every year.
We raised our FY24e earnings forecast for LHN by 7% to account for the better-than-expected earnings from Coliwoo. Our LHN's target price is raised from S$0.39 to S$0.42. We peg our valuations to 6.5x FY24e P/E, while the industry is trading around 13x.
The Positive
Stellar earnings for Coliwoo.
- Read this at SGinvestors.io -
The commencement of the 411 keys in Coliwoo Orchard in Feb 23 was a major boost to room rates. The residential rental index in Singapore is up 33% over the past 2-years but has started to stabilise.
The Negative
Weaker facilities management earnings.
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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