Lincotrade’s New Tuas Headquarters and 204-bed Worker Dormitory Obtains TOP

Key Highlights and Investor Considerations

• Temporary Occupation Permit (TOP) Secured: Lincotrade & Associates Holdings Limited has officially obtained the TOP for its new headquarters at 5 Tuas Avenue 12, Singapore. This marks a significant milestone in the company’s expansion and operational efficiency initiatives.
• Strategic Asset Acquisition: The New Tuas Headquarters was acquired through a successful tender from JTC Corporation at a bid price of S\$9.6 million. The tenure is 20 years, starting from 26 March 2024, providing long-term stability for the Group’s operations.
• Expanded Facility and Upgrades: The site consists of a 2-storey factory, with land area of approximately 6,498.50 square metres, and an increased gross floor area after additions and alterations (A&A) to 6,276.80 square metres. Solar panels are to be installed, reducing energy costs and improving environmental footprint.
• 204-bed Ancillary Workers Dormitory: Approval has been obtained to build a 204-bed dormitory onsite. This is expected to reduce recurring accommodation costs for workers. Additionally, unutilised beds can generate a steady stream of recurring income, pending relevant authority approvals.
• Operational Transition: The current headquarters at Sungei Kadut Loop received a lease extension until 31 March 2026, allowing time for necessary reinstatement works before the property is returned to JTC.

Business Impact and Shareholder Considerations

• Cost Savings and New Revenue Streams: By housing workers onsite, Lincotrade will significantly reduce recurring accommodation costs—a positive impact on operational margins. The ability to rent unused dormitory beds introduces a new potential revenue stream, enhancing the company’s recurring income base.
• Capacity for Future Growth: The expanded headquarters and purpose-built dormitory demonstrate readiness for increased business activities and future expansion. This positions Lincotrade for the next phase of growth, potentially impacting future earnings and share value.
• Sustainability Initiatives: The installation of solar panels and use of environmentally friendly materials (laminate and veneer from recycled sources) supports Lincotrade’s sustainability strategy. The Group holds the Singapore Green Label for its renewable and sustainable wooden panel doors, appealing to ESG-focused investors.
• Diversification into Property Development: During FY2025, Lincotrade expanded into property development via Linc Venture Land Sdn. Bhd. in Malaysia, further diversifying its business portfolio.

Company Profile & Operations

Established in 1991, Lincotrade has more than 30 years of experience in the interior fitting-out industry. It operates its own in-house processing facility for carpentry products since 2006. The company provides interior fitting-out, additions and alterations (A&A), and building construction services across commercial premises (offices, hotels, malls, F&B), residential premises (condominiums), showflats, and sales galleries. Services include space planning, layout, interior construction, finishing works, and mechanical-electrical-plumbing installations.

Potential Share Price Catalysts

• Asset Acquisition and Expansion: The successful acquisition and expansion of the new HQ with a dormitory could be viewed positively by the market due to improved operational efficiencies and cost savings.
• Recurring Income Opportunity: If Lincotrade secures approval to rent out unused dormitory beds, it could unlock a new, steady source of recurring income.
• Sustainability Credentials: Enhanced environmental initiatives and awards may attract institutional investors focused on ESG criteria.
• Property Development Diversification: Entry into property development in Malaysia offers additional growth avenues and revenue diversification.
• Operational Transition: The seamless relocation from Sungei Kadut Loop and use of new facilities may improve productivity and support business growth, impacting future financial results.

CEO Statement

“We are pleased to share that our New Tuas Headquarters, complete with a 204-bed ancillary workers dormitory, has officially obtained its Temporary Occupation Permit and we are making plans for the relocation expeditiously to support our expanding business activities and future growth plans. The purpose-built dormitory will also generate meaningful operational benefits. By housing our workers on-site, we can reduce recurring accommodation costs while the un-utilised beds provide an opportunity to create a steady stream of recurring income. Together with our recent corporate milestones, these achievements further reinforce our business foundation and the Group will be better positioned for the next phase of growth.”
– Mr. Jackie Soh Loong Chow, CEO of Lincotrade

Conclusion

The completion and TOP acquisition of Lincotrade’s New Tuas Headquarters with its expanded dormitory is a significant operational and financial milestone. Investors should watch for further developments, particularly regarding approvals for dormitory bed rentals, the impact of cost savings, and sustainability initiatives. These factors are likely to influence future earnings and could act as share price catalysts.

Disclaimer

The information provided in this article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research and consult with financial advisors before making any investment decisions. The author does not guarantee the accuracy or completeness of the information and shall not be liable for any losses or damages arising from the use of this article.

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