LHN (41O) H1 2024 earnings summary

Executive summary

• 1H2024 revenue rose 27.2% YoY to S$54.547m and gross profit increased 36.0% to S$34.8m; continuing-operations profit attributable to equity holders fell 14.6% to S$13.0m.

• Total period profit was S$13.3m, down 27.6%; adjusted PBT, excluding specified fair value movements, the associate disposal gain and discontinued operations, rose 13.7% to S$17.7m.

• Residential growth and Facilities Management expansion supported revenue, while higher finance costs and lower other gains weighed on reported profit.

Financial highlights

• Gross margin rose to 63.8% from 59.7%; cost of sales increased 14.2% to S$19.8m, below revenue growth.

• Profit before tax was S$15.3m, down 14.5%; other gains and income fell 83.7% to S$2.6m, while net finance costs rose 31.7% to S$5.6m.

• Basic EPS from continuing operations was 3.17 Singapore cents, down 14.6%; diluted EPS was 3.14 cents, down 15.4%.

• Interim DPS was 1.0 Singapore cent, unchanged YoY.

Outlook and guidance

• Targeting at least 800 additional Coliwoo keys annually for 3 years; new residential launches, tender wins and acquisition plans are expected to support growth into FY2025.

• River Valley Road properties are expected to contribute revenue in 2H FY2024; GSM levels 3–6 are planned for conversion into serviced apartments with an estimated 187 keys.

• 55 Tuas South, a 112,000 sq ft industrial development, is under construction and expected to receive its Temporary Occupation Permit in 4Q FY2024.

• Two healthcare-professional lodging facilities for ~700 people are scheduled to open in 2H2024; energy plans target expanded enterprise solutions and increased Singapore capacity.