Broker: CGS International
Date of Report: May 4, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Lum Chang Creations (LUCC SP)
- Action: ADD (Buy equivalent, no change)
- Target Price: S\$1.32 (up from previous S\$0.93)
- Current Price: S\$1.03
- Upside: 28.2%
- Key Idea: LUCC announced a 1-for-1 bonus issue (subject to shareholder approval) and a proposed transfer from Catalist to the SGX Mainboard, supported by strong 1HFY26 results (PATMI up 104% YoY). Index inclusion in the MSCI Global Micro Cap Singapore Index is expected to enhance trading liquidity and shareholder base.
- Valuation: Valued at 17x FY27F P/E (CY25 sector average), reflecting sector momentum and order wins. Re-rating catalysts include faster-than-expected ramp-up of Malaysia business and higher order wins. Downside risks are higher costs or construction disruptions.
- Dividend: Interim dividend of 2.5 Scts/share for 1HFY26, 3.15% yield.
- Financial Highlights: FY26F net profit S\$22.6m (+75% YoY), robust order book, high ROE (FY26F 77.4%).
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
