Financial Analysis of LHN Limited: Net Profit Growth

Business Overview

LHN Limited, incorporated in Singapore, operates with limited liability and is listed on both the Hong Kong and Singapore Stock Exchanges. The company is involved in various business segments, including co-living residential properties and investment properties. Its operations extend across different regions, focusing mainly on Singapore and Hong Kong.

Industry Position and Competitors

LHN Limited is positioned within the real estate and property management industry. The company’s main competitors include other real estate firms that offer co-living spaces and manage investment properties. LHN Limited appears to have a competitive advantage in its niche residential property market, benefiting from increasing demand in co-living spaces.

Revenue Streams and Customer Base

The company generates revenue primarily from its co-living business and investment properties. The customer base includes individuals seeking co-living arrangements and joint ventures involved in property investments. LHN Limited’s supply chain involves property acquisition, development, and management.

Financial Statement Analysis

Income Statement

For the financial year ended 30 September 2024, LHN Limited expects to report a net profit before tax of no less than S\$50 million. This represents an increase from the net profit before tax of approximately S\$44.3 million reported in FY2023 [[1]].

Balance Sheet and Cash Flow Statement

The report does not provide detailed balance sheet or cash flow statement data. However, the increase in profit is attributed to higher earnings from co-living operations and net fair value gains on investment properties.

Key Findings and Investor Action

Strengths

• Significant growth in profits from continuing operations.
• Positive net fair value gains on investment properties.

Risks

• Absence of one-off gains from prior disposals.
• Lower gains from net investment in subleases.

Special Activities

The company is focusing on enhancing profitability through its co-living business and optimizing its investment properties.

Recommendations

If currently holding the stock: Consider maintaining the position due to anticipated profit growth and strategic focus on profitable segments.

If not currently holding the stock: Evaluate potential entry as the company shows signs of profitability improvement, albeit exercise caution due to industry risks.

Disclaimer

This analysis is based on preliminary financial data and should not be the sole basis for investment decisions. Investors are advised to conduct further research or consult financial advisors.

Report Details

Date of Report: 15 November 2024

Financial Year Reporting: FY2024

View LHN Historical chart here