LHN Limited: Strong Growth Potential and Strategic Initiatives Drive Buy Rating

In a report released today, Paul Chew from Phillip Securities maintained a Buy rating on LHN Limited (41O – Research Report), with a price target of S$0.61.

Paul Chew has given his Buy rating due to a combination of factors that highlight LHN Limited’s strong growth potential and strategic initiatives. The company’s revenue and profit after tax and minority interests (PATMI) for the first half of 2025 were in line with expectations, driven by significant growth in the co-living sector and the sale of food factory units. The co-living segment, known as Coliwoo, saw a 20% year-on-year increase in keys, indicating robust demand and expansion opportunities.
Furthermore, LHN Limited is trading at a 20% discount to its book value, presenting an attractive investment opportunity. The proposed spinoff of Coliwoo on the SGX Mainboard is seen as a positive move that could unlock the franchise’s underlying value and accelerate its growth, particularly in international markets. Despite an increase in net debt due to investment property purchases, the company’s shift towards a more asset-light model is expected to facilitate faster expansion. These factors, combined with a stable interest expense and a healthy growth outlook for Coliwoo, underpin Paul Chew’s Buy recommendation.