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.

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">



Highlights of SGX-Listed Construction Plays

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Lum Chang (LCH SP)

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

Highlights of SGX-Listed Construction Plays

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)