LHN

LHN

Postby winston » Thu Sep 15, 2016 9:23 am

not vested

Carpark management business to drive LHN’s FY17 earnings growth

By Michelle Zhu

SINGAPORE (Sept 14): NRA Capital continues to keep its “overweight” rating on property management services group LHN Limited, with a higher fair value of 28.5 cents on higher 3Q earnings.

“The high-average return classification (“overweight” rating) reflects our strong conviction, while we revised the risk classification for LHN from low to average as LHN’s shares now enjoy higher trading activity and thus can be subject to higher share price volatility,” announces analyst Liu Jinshu in a Wednesday report.

LHN posted a 71.1% rise in 3Q earnings to $5.9 million for the nine months ended June 2016, from $3.4 million the year before.

NRA has hence revised its projected gross margin to 27% for FY16, and conservatively expects 4Q16 PATMI of $1.6 million, excluding any fair value gains from its properties.

Apart from the company’s recently-completed acquisition of a carpark at Golden Mile Tower, LHN’s management has also added seven locations to its carpark portfolio that now totals 6,800 lots across 37 carparks.

“We can expect slightly higher profitability from [LHN’s] car park management business as the HDB and URA will be revising public car park charges higher by 20% from Dec 1,” opines Liu.

LHN has as much as 40% of its lots in URA public car parks, although Liu believes the company will also be able to enjoy some scope to raise rates for private car parks.

While the analyst notes “relatively low” revenue contribution from the carpark management business, which stood at $7.13 million in FY15, he estimates the additional lot numbers and higher parking rates may nevertheless represent an additional $0.7 million worth of contributions in FY17.

Liu also expects LHN’s upcoming completion of Addition & Alterations works to its wholly-owned carpark at 100 Eunos Ave 7 to contribute about $0.2-0.4 million of net profit per year on full occupancy. This will bring NRA’s total visibility of net profit growth for FY17 to $0.9-1.1 million.

However, a key risk to NRA’s view is the possibility of lease renewals, warns the analyst: “As LHN does not fully disclose lease-to-expiry information, our forecasts may be affected by changes in margins during lease renewals.”

Shares of LHN closed 12.2% higher at 23 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/c ... e-87358173
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Re: LHN

Postby behappyalways » Wed Aug 09, 2017 2:53 pm

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Re: LHN

Postby behappyalways » Sat Dec 30, 2017 7:49 pm

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https://www.theedgesingapore.com/lhn-ra ... k-exchange
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