Broker Name: CGS International
Date of Report: February 13, 2026
Excerpt from CGS International report.
Report Summary
- Lum Chang Creations (LUCC) reported a strong 1HFY26 performance, with PATMI up 104% year-on-year, driven by robust revenue growth and a significant expansion in profit margins due to effective cost management and resource utilisation.
- The company declared an interim dividend and maintains a solid orderbook of S\$132m, bolstered by major project wins, and was recently included in the MSCI Global Micro Cap Singapore Index, likely enhancing trading liquidity.
- LUCC is progressing with its Malaysia expansion, supported by IPO proceeds, and the broker has raised profit forecasts for FY26-28 on the back of better-than-expected margins, reiterating an “Add” rating with an increased target price of S\$0.93.
- Key risks include higher-than-expected costs and potential construction disruptions; upside drivers include faster Malaysia ramp-up and additional order wins.
- The company is recognised for its expertise in urban revitalisation, conservation, and fit-out works, with ongoing efforts in sustainability and workplace safety, though no ESG premium/discount was applied to current valuations.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
