CGS International
Report Date: September 10, 2025
LHN Ltd: Unveiling New Growth Horizons with Coliwoo Listing and Asset-Light Strategy
Executive Summary: LHN’s Strategic Leap Forward
LHN Ltd, a prominent player in Singapore’s property development and investment sector, continues to deliver impressive operating momentum in 3Q25. With a focus on high occupancy rates, robust growth in its co-living brand Coliwoo, and a strategic shift towards an asset-light model, LHN is positioning itself for an exciting phase of expansion, supported by a landmark Mainboard IPO for Coliwoo and ongoing asset recycling initiatives.
CGS International reiterates its Add rating for LHN, raising the target price to S$1.20, reflecting a forward-thinking valuation based on FY27F earnings and a 10x P/E multiple—consistent with the company’s 10-year average.
Coliwoo Mainboard Listing: Paving the Way for LHN’s Next Expansion Phase
LHN’s co-living subsidiary, Coliwoo Group, has received SGX approval for a Mainboard listing, valid for three months from September 9, 2025. The IPO, expected in early November, will offer a market capitalization between S\$257 million and S\$359 million, with a 25–35% free float. The listing follows LHN’s planned delisting from the Hong Kong Stock Exchange, anticipated to complete in October 2025.
Proceeds from Coliwoo’s IPO are earmarked to accelerate LHN’s growth in space optimisation and facilities management. Management is also considering M&A opportunities to bolster recurring income and is eyeing a higher dividend yield of 3-4%, supported by a stronger balance sheet and the value unlocked from the Coliwoo IPO.
Operational Momentum: High Occupancy and Portfolio Expansion
LHN sustained high occupancy rates in 3Q25:
- Co-living and industrial properties: 97–98% occupancy
- Commercial properties: 93% occupancy
The number of Coliwoo keys surged 14% quarter-on-quarter and 23% year-on-year to 2,960, fueled by a new master lease at 159 Jalan Loyang Besar (382 keys). LHN is on track to add 300–400 more Coliwoo keys in 4Q25F, aligning with the 800 new keys per annum target.
Facilities management also saw solid gains:
- 17 new contracts secured in 3Q25
- Customer base expanded 10% year-on-year to 126
- Carparks under management grew 3% year-on-year to 100
Asset Recycling and Asset-Light Strategy
LHN is actively recycling capital by divesting mature assets to fund growth:
- Completed sale of subsidiary holding 115 Geylang Road for S\$25.8 million (net proceeds ~S\$15 million) in July 2025
- Sale processes ongoing for 471 Balestier Road and 404 Pasir Panjang Road
- Focus on acquiring larger properties (100–150+ keys) under master leases to enhance economies of scale in the Coliwoo business
Financial Performance Snapshot
| Metric |
Sep-23A |
Sep-24A |
Sep-25F |
Sep-26F |
Sep-27F |
| Total Net Revenues (S\$m) |
93.6 |
121.0 |
140.3 |
164.2 |
183.2 |
| Operating EBITDA (S\$m) |
36.12 |
43.84 |
59.89 |
61.49 |
72.52 |
| Net Profit (S\$m) |
38.21 |
47.29 |
33.32 |
42.99 |
50.33 |
| Normalised EPS (S\$) |
0.06 |
0.09 |
0.10 |
0.10 |
0.12 |
| Dividend Per Share (S\$) |
0.030 |
0.030 |
0.030 |
0.030 |
0.030 |
| Dividend Yield (%) |
3.23 |
3.23 |
3.23 |
3.23 |
3.23 |
| ROE (%) |
11.4 |
15.7 |
16.4 |
14.8 |
15.5 |
| Net Gearing (%) |
59 |
93 |
96 |
96 |
106 |
Peer Comparison: Valuation and Performance Metrics
| Company |
Ticker |
Reco. |
Price (lcl curr) |
Target (lcl curr) |
Market Cap (US\$m) |
P/E CY26F |
P/E CY27F |
P/BV CY26F |
P/BV CY27F |
ROE CY26F (%) |
Yield CY26F (%) |
| LHN Ltd |
LHN SP |
Add |
0.93 |
1.20 |
310 |
8.6 |
10.9 |
1.23 |
1.37 |
15.0 |
3.2 |
| Centurion Corporation Ltd |
CENT SP |
Add |
1.76 |
2.05 |
1,154 |
10.2 |
9.7 |
1.07 |
1.17 |
11.0 |
2.5 |
| Boustead Singapore Ltd |
BOCS SP |
NR |
1.61 |
na |
613 |
8.2 |
na |
na |
na |
na |
6.0 |
| CapitaLand Ascott Trust |
CLAS SP |
Add |
0.90 |
1.13 |
2,685 |
21.6 |
22.4 |
0.81 |
0.79 |
3.7 |
7.0 |
| CDL Hospitality Trust |
CDREIT SP |
Hold |
0.82 |
0.75 |
806 |
38.5 |
137.7 |
0.56 |
0.57 |
1.5 |
5.8 |
| Far East Hospitality Trust |
FEHT SP |
Add |
0.60 |
0.74 |
959 |
16.8 |
25.6 |
0.67 |
0.67 |
4.0 |
6.5 |
| UNITE Group PLC/The |
UTG |
NR |
705.50 |
na |
4,667 |
15.0 |
14.3 |
0.69 |
0.65 |
5.9 |
5.3 |
ESG (Environmental, Social, Governance): Solid Foundation, Ambitious Targets
LHN has articulated a clear ESG roadmap:
- Emissions (Scopes 1 & 2) rose 42% yoy in FY24 due to expanding managed floor area.
- Targeting a 5% reduction in Scope 2 emissions intensity by FY28 (base year: 2023).
- Solar energy capacity exceeded 1,200 kWp across 10 sites in FY24, up from 1,100 kWp in FY23.
- Customer satisfaction improved to 87% for Space Optimisation (FY23: 81%).
- ESG performance is overseen by a Sustainability Innovation Committee at board level, and integrated into business planning.
- No LSEG ESG score rating yet; no premium/discount applied to valuation for ESG factors as of now.
Balance Sheet Overview
| Metric (S\$m) |
Sep-23A |
Sep-24A |
Sep-25F |
Sep-26F |
Sep-27F |
| Total Cash & Equivalents |
62.4 |
50.7 |
106.4 |
134.3 |
164.6 |
| Total Investments |
396.0 |
565.7 |
565.7 |
626.1 |
686.8 |
| Total Liabilities |
336.0 |
439.7 |
524.5 |
581.5 |
682.3 |
| Shareholders’ Equity |
216.2 |
254.2 |
275.2 |
306.0 |
344.3 |
Key ratios highlight strong growth and resilience:
- Revenue Growth (FY23 to FY27F): 10.9% → 29.2% → 16.0% → 17.0% → 11.6%
- Operating EBITDA Margin: 38.6% (FY23A) to 39.6% (FY27F)
- Net Dividend Payout Ratio: 53.6% (FY23A) to 24.9% (FY27F)
Stock Performance and Analyst Consensus
- Current Price: S\$0.93
- Target Price: S\$1.20 (up from S\$1.00)
- Up/downside: 29.0%
- Consensus Ratings: Buy 4, Hold 0, Sell 0
- Market Cap: US\$309.8m (S\$397.5m)
- Free Float: 43.2%
- 1M/3M/12M Price Performance: +11.4% / +69.1% / +173.5%
- Major Shareholder: Hean Nerng Group Pte Ltd (54.8%)
ESG Outlook and Corporate Governance
LHN is committed to improving emissions intensity, expanding solar capacity, and elevating governance standards. ESG oversight is embedded at the board level, with customer satisfaction and community engagement initiatives showing measurable improvement. The group’s progress towards its 2028 ESG targets will be closely monitored for potential future impact on valuations.
Risks and Catalysts
Key re-rating catalysts include:
- Potential M&A activity
- Special dividends
Key downside risks:
- Falling occupancy or rental rates
- Limited availability of suitable acquisition targets
Conclusion
LHN Ltd stands at the cusp of a transformative phase, underpinned by the Coliwoo IPO, asset-light strategy, and robust fundamentals across its business segments. With a raised target price and a reinforced Add rating, LHN offers compelling growth and value opportunities for investors seeking exposure to Singapore’s dynamic property and co-living sectors.
For further details, contact the analysts:
TAN Jie Hui: [email protected]
LI Jialin: [email protected]
