Dealing, Product Financing and Custody Services, Tickrs

Tickrs

Dealing, Product Financing and Custody Services

Tickrs Financial Singapore Pte Ltd (TFS) obtained Capital Markets Services (CMS) License from the Monetary Authority of Singapore (MAS) in 2022. Product offering include stock trading services across 10 global markets, futures trading, fixed income and wealth management products offering.

Equity Bottom-Up

<ul>
<li>Lum Chang Holdings has entered FY2026 with clearer earnings quality, stronger balance-sheet resilience and a more visible value-unlocking story than at initiation.</li>
<li>While group revenue softened 7.7% YoY in 1HFY2026 to S$220.6m, gross profit rose 53% to S$29.7m and PATMI more than doubled to S$7.3m, indicating that the group is now compounding on better project mix rather than relying purely on volume growth.</li>
<li>The post-listing expansion of Lum Chang Creations ("LCC") has lifted the share of higher-margin restoration and fit-out work within the consolidated group, even as the core construction business remains the dominant revenue engine.</li>
</ul>


Lum Chang Holdings has entered FY2026 with clearer earnings quality, stronger balance-sheet resilience and a more visible value-unlocking story than at initiation.
While group revenue softened 7.7% YoY in 1HFY2026 to S$220.6m, gross profit rose 53% to S$29.7m and PATMI more than doubled to S$7.3m, indicating that the group is now compounding on better project mix rather than relying purely on volume growth.
The post-listing expansion of Lum Chang Creations ("LCC") has lifted the share of higher-margin restoration and fit-out work within the consolidated group, even as the core construction business remains the dominant revenue engine.


Lum Chang Holdings Limited: Margin Rebuilt, Special Dividend Declared, Embedded Value Yet to Be Fully Recognised

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h3><a href="https://www.smartkarma.com/entities/lhn-ltd" target="_blank" data-smartkarma-citation="entities:27234" rel="noopener">LHN Ltd (LHN SP)</a> JV acquires Balestier hotel for S$15m; Another expansion on its Co-living business (BUY; TP S$0.42/share)</h3><p>LHN’s Coliwoo and Four Star have formed a JV to acquire Balestier Hotel for S$15m and intended to run and operate it as a Co-living hotel. Coliwoo will control 40% of the new JV company, while Four Star will control the remaining 60%. The Co-living hotel will operate under Coliwoo brand, a Co-living business that runs more than 800 rooms in Singapore in areas such as Balestier, Boon Lay, and Bukit Timah. Balestier Hotel is at 471 &amp; 473 Balestier Road, and the freehold property has a total GFA of about 10,000sqft. The seller of the hotel is an independent third party. The completion of the transaction is expected to be completed by 22Dec21.</p><p>Comments: This acquisition adds to 320 Balestier Road (acquired in 16Dec20) and 40 &amp; 42 Amber Road (acquired in 9Jun21), as well as acquisitions of 75 Beach Road and 115 Geylang Road, which are expected to add 166 keys to LHN’s Co-living portfolio in FY22E. These 4 projects with S$61.9m total investments should generate 10-20% return to bottom-line upon stabilization from FY23-24E onwards. We continue to like LHN for its efficient space optimization business as well as its expansion in the Co-living business. We reiterate BUY with TP S$0.42/share. LHN is trading at an attractive 4.4x FY21E P/E and ~4.5% yield.</p>

LHN Ltd (LHN SP) JV acquires Balestier hotel for S$15m; Another expansion on its Co-living business (BUY; TP S$0.42/share)LHN’s Coliwoo and Four Star have formed a JV to acquire Balestier Hotel for S$15m and intended to run and operate it as a Co-living hotel. Coliwoo will control 40% of the new JV company, while Four Star will control the remaining 60%. The Co-living hotel will operate under Coliwoo brand, a Co-living business that runs more than 800 rooms in Singapore in areas such as Balestier, Boon Lay, and Bukit Timah. Balestier Hotel is at 471 &amp; 473 Balestier Road, and the freehold property has a total GFA of about 10,000sqft. The seller of the hotel is an independent third party. The completion of the transaction is expected to be completed by 22Dec21.Comments: This acquisition adds to 320 Balestier Road (acquired in 16Dec20) and 40 &amp; 42 Amber Road (acquired in 9Jun21), as well as acquisitions of 75 Beach Road and 115 Geylang Road, which are expected to add 166 keys to LHN’s Co-living portfolio in FY22E. These 4 projects with S$61.9m total investments should generate 10-20% return to bottom-line upon stabilization from FY23-24E onwards. We continue to like LHN for its efficient space optimization business as well as its expansion in the Co-living business. We reiterate BUY with TP S$0.42/share. LHN is trading at an attractive 4.4x FY21E P/E and ~4.5% yield.

<ul><li>We identify five compelling drivers supporting our BUY recommendation and S$0.525 target price: 1.</li><li>Construction Supercycle &amp; Record Order Book Visibility Singapore's construction sector is entering a sustained upcycle, with the Building and Construction Authority (BCA) forecasting S$47-53 billion of contracts awarded in 2025, representing 0.3% to 11.7% growth above pre-COVID levels.</li><li>Lum Chang's A1-grade contractor status and proven track record position it to capture significant share of mega-projects including Changi Airport Terminal 5, MRT line Research extensions, and public housing developments.</li></ul>

We identify five compelling drivers supporting our BUY recommendation and S$0.525 target price: 1.Construction Supercycle &amp; Record Order Book Visibility Singapore's construction sector is entering a sustained upcycle, with the Building and Construction Authority (BCA) forecasting S$47-53 billion of contracts awarded in 2025, representing 0.3% to 11.7% growth above pre-COVID levels.Lum Chang's A1-grade contractor status and proven track record position it to capture significant share of mega-projects including Changi Airport Terminal 5, MRT line Research extensions, and public housing developments.

Lum Chang Holdings Initiation : Building Heritage, Bridging Horizons

Mid-market focused investment bank within SE Asia, Evolve Capital Advisory Pte Ltd

Evolve Capital Research

Mid-market focused investment bank within SE Asia

Evolve Capital Advisory Pte Ltd

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dezign-format-group-limited" target="_blank" data-smartkarma-citation="entities:45666:1" rel="noopener">Dezign Format Group (DFG SP)</a> is a design-and-build specialist offering experiential marketing and events management solutions, with a key focus on the MICE industry.</li>
<li>It has worked with a variety of global luxury brands and integrated resorts, with many of its projects being directly sourced rather than through open tender.</li>
<li>We initiate rated coverage on DF with a DCF-based TP of S$0.40, implying a 14.4x FY25E P/E, representing an upside of approximately 33.3%.</li>
</ul>



Dezign Format Group (DFG SP) is a design-and-build specialist offering experiential marketing and events management solutions, with a key focus on the MICE industry.
It has worked with a variety of global luxury brands and integrated resorts, with many of its projects being directly sourced rather than through open tender.
We initiate rated coverage on DF with a DCF-based TP of S$0.40, implying a 14.4x FY25E P/E, representing an upside of approximately 33.3%.


Dezign Format Initiation - Scaling Within a Niche Space

<ul>
<li>On 15th May 2025, 3HA Capital (a consortium formed by HHH Group,Hanwa Co, AYS and Thor Capital) launched a takeover offer for <a href="https://www.smartkarma.com/entities/cosmosteel-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15964:1" rel="noopener">Cosmosteel Holdings (CSMS SP)</a> at S$0.20/share.</li>
<li>After the offer was deemed unfair but unreasonable, 3HA Capital revised the offer upwards to S$0.25/share on 23rd Jun 2025 but also announced that it was final.</li>
<li>We opine it would not be in the minority shareholders’ interests to continue holding onto their stakes.  <strong>We advise shareholders to accept the deal or sell in the open market.</strong>
</li>
</ul>


On 15th May 2025, 3HA Capital (a consortium formed by HHH Group,Hanwa Co, AYS and Thor Capital) launched a takeover offer for Cosmosteel Holdings (CSMS SP) at S$0.20/share.
After the offer was deemed unfair but unreasonable, 3HA Capital revised the offer upwards to S$0.25/share on 23rd Jun 2025 but also announced that it was final.
We opine it would not be in the minority shareholders’ interests to continue holding onto their stakes.  We advise shareholders to accept the deal or sell in the open market.



Cosmosteel Holdings Special Report - Decent Premium Above the 10Y Average

Singapore

Lum Chang is a Singapore-based company primarily engaged in construction, property development, and investment. Its core activities include building construction, civil engineering works, and developing residential and commercial properties, hotels, and resorts. The company also provides interior fit-out, conservation, restoration, and project management services. Headquartered in Singapore, the company was incorporated in 1982.

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Lum Chang (LCH SP)

Lum Chang Holdings Limited: Margin Rebuilt, Special Dividend Declared, Embedded Value Yet to Be Fully Recognised

A stronger earnings mix, a declared 2.0¢ interim dividend tied to the Lum Chang Creations listing, and updated visibility on the listed-subsidiary...

Tickrs

ASEAN Builder's Scoop (27Sep21)

LHN expands further its Co-living business; FIRT declines to acquire a ROFR asset; DD Hotel 101 Cebu Mactan begins constructions; 2Q21 Phils prop...

SCCM Asia Research

Lum Chang Holdings Initiation : Building Heritage, Bridging Horizons

We identify five compelling drivers supporting our BUY recommendation and S$0.525 target price: 1. Construction Supercycle & Record Order Book...

Tickrs

Dezign Format Initiation - Scaling Within a Niche Space

Dezign Format Group (DFG SP) is a design-and-build specialist offering experiential marketing and events management solutions, with a key focus on...

Evolve Capital Advisory Pte Ltd

Cosmosteel Holdings Special Report - Decent Premium Above the 10Y Average

3HA Capital's final offer for the takeover of CosmoSteel Holdings is at S$0.25 / share. We advise shareholders to accept the deal or sell in the...

Evolve Capital Advisory Pte Ltd

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