Broker: CGS International
Date of Report: May 22, 2026
Excerpt from CGS International report.
Report Summary
- Stock: LHN Ltd (Ticker: LHN SP)
- Action: Downgrade to Hold (from Add)
- Target Price: S\$0.67 (lowered from S\$0.88)
- Current Price (at report date): S\$0.64
- Key Idea: Near-term growth is limited for LHN Ltd outside of its co-living business (Coliwoo), with most new initiatives unlikely to contribute meaningfully until FY27 and beyond. The company’s strong 1HFY26 results were driven by cost discipline and favourable revenue mix, but core earnings are expected to decline by about 17% in FY26 following the spin-off of Coliwoo.
- Highlights:
- 1HFY26 PATMI of S\$16.8m (+19% yoy) beat expectations due to improved margins and cost savings.
- Core PATMI for FY26 is forecast to decline post Coliwoo spin-off.
- Valuation multiple is reduced to 8x FY27F P/E (from 10x), reflecting softer growth prospects.
- Dividend yield for FY26-28F projected at 4.7%.
- Upside risks include sizeable M&A deals; downside risks are falling occupancy/rental rates and limited acquisition targets.
- Implications: Investors should expect limited upside in the near term. The stock is rated Hold with a modest upside to target price and reasonable yield as downside support.
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
