LHN Limited: FY2025 Profit Guidance Review
LHN Limited, a real estate management services group listed in Singapore, has issued its profit guidance for the financial year ended 30 September 2025 (FY2025). The following analysis presents key insights from the company’s official disclosure, summarizing its expected performance and providing a clear outlook for investors.
Key Financial Highlights and Guidance
The Board of Directors has conducted a preliminary assessment of the Group’s unaudited financial results for FY2025. Notably:
- LHN Limited expects to record better core profit before tax and before fair value changes in FY2025 compared to FY2024.
- Despite this improvement, the Group’s net profit before tax is expected to decrease year-on-year, primarily due to the absence of net fair value gain on investment properties (including joint ventures) in FY2025, which was present in FY2024.
Summary Table: Profit Guidance
| Metric |
FY2025 (Guided) |
FY2024 (Actual) |
YoY Change |
| Core Profit Before Tax (before fair value changes) |
Higher |
Lower |
Positive |
| Net Profit Before Tax |
Lower |
Higher (due to fair value gain) |
Negative |
| Net Fair Value Gain (Investment Properties) |
Absent |
Present |
N/A |
Fair Value Changes and Exceptional Items
The company’s guidance specifically highlights the impact of fair value changes on its investment properties. In FY2024, net fair value gains contributed positively to net profit before tax, but such gains are absent in FY2025. This suggests that the core operating business is improving, but headline net profit is affected by the lack of asset revaluation gains.
Chairman’s Statement
The Board of Directors advises shareholders and potential investors to exercise caution when dealing in the shares of the Company. This profit guidance is only based on a preliminary assessment by the Board, based on information currently available, and may be subject to further adjustments and finalisation.
The tone of the statement is cautious and measured, emphasizing that the guidance is preliminary and could change upon finalization of the audited results.
Events That Could Affect Performance
- No mention of natural disasters, legal disputes, policy changes, or macroeconomic shifts in the report.
- No disclosed fundraising, share buybacks, asset sales, or other corporate actions.
Outlook and Conclusion
Overall, LHN Limited’s financial outlook for FY2025 appears neutral to slightly positive at the core operating level, but weaker in terms of reported net profit due to the absence of fair value gains. The company’s core profitability is improving, but investors should be aware that headline profit figures will be lower than the previous year.
Investor Recommendations
- If you are currently holding LHN Limited shares:
Consider maintaining your position if you are focused on long-term core operational improvements, as the underlying business seems to be strengthening. However, be prepared for potentially lower reported profits and possible share price volatility when final results are released. Closely monitor future announcements for any significant adjustments.
- If you are not currently holding this stock:
Exercise caution before initiating a new position. The lack of fair value gains will affect short-term profit numbers, which could weigh on sentiment. Wait for the finalized audited results and further clarity on operational trends before considering entry.
Disclaimer: This analysis is based solely on the profit guidance provided by LHN Limited and does not constitute investment advice. Investors should seek independent professional advice and further information before making any investment decisions.
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