CGS-CIMB analyst Lim Siew Khee has reiterated their bullish stance on 41O stock, giving a Buy rating yesterday.
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Lim Siew Khee has given his Buy rating due to a combination of factors that highlight LHN Limited’s growth potential. One of the primary reasons is the significant contribution expected from Coliwoo, which is projected to drive approximately 40% of LHN’s net profit for FY26. This growth is supported by new and existing properties, including upcoming projects like 141 Middle Road and 159 Jalan Loyang Besar, which are anticipated to see strong demand.
Additionally, Coliwoo’s strategic focus on expanding its portfolio through acquisitions and asset enhancements, targeting 800 new keys annually, further strengthens its growth outlook. LHN’s plans to acquire a Work+Store building and convert existing facilities into air-conditioned storage units are expected to enhance rental income. Despite a reduction in the target price due to higher minority interest post-Coliwoo’s listing, the stock remains attractive with a core P/E multiple of 10x, supported by robust growth prospects and potential re-rating catalysts such as significant M&A activities.