Broker Name: CGS International
Date of Report: December 8, 2025
Excerpt from CGS International report.
Report Summary
- LHN Ltd’s post spin-off growth is expected to be driven primarily by its Coliwoo business, which is projected to contribute around 40% of FY26 net profit, supported by new properties and full-year input from recently launched locations.
- The company targets acquiring 800 new Coliwoo keys annually, expanding self-storage via acquisitions and asset enhancements, and remains confident in hitting its growth targets due to a robust pipeline.
- Despite a cut in earnings forecasts due to higher minority interest from Coliwoo’s listing, LHN is rated “Add” with a lower target price of S\$0.88, reflecting ongoing value unlocking and reinvestment capabilities.
- FY25 profits fell due to fair value losses on master-leased assets, but core pre-tax profit still rose 33% year-on-year after excluding one-off items; a 2H25 dividend of 3 Scts implies an attractive yield.
- Key risks include potential declines in occupancy or rental rates and difficulty in finding suitable acquisition targets, while major catalysts are sizable M&A deals.
- LHN demonstrates strong ESG governance, environmental initiatives like solar deployment, and improved customer satisfaction, with ESG factors monitored but not yet included in valuations.
- The company remains financially healthy with anticipated revenue growth, solid dividend yields, and ongoing investments in property and self-storage expansion.
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
