Catalist:41O

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

LHN Limited, an investment holding company, provides real estate management services in Singapore, Hong Kong, Indonesia, Thailand, Cambodia, Myanmar, and internationally. More Details


Snowflake Analysis

Solid track record and good value.

Share Price & News

How has LHN's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 41O is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 41O's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.1%

41O

0.2%

SG Real Estate

0.3%

SG Market


1 Year Return

48.8%

41O

-10.7%

SG Real Estate

-3.4%

SG Market

Return vs Industry: 41O exceeded the SG Real Estate industry which returned -10.7% over the past year.

Return vs Market: 41O exceeded the SG Market which returned -3.4% over the past year.


Shareholder returns

41OIndustryMarket
7 Day-2.1%0.2%0.3%
30 Day-9.3%1.4%1.6%
90 Day-3.6%2.3%6.1%
1 Year60.2%48.8%-7.4%-10.7%1.7%-3.4%
3 Year10.9%-2.1%-19.2%-26.4%-7.1%-18.5%
5 Year65.9%40.9%3.3%-10.7%17.8%-3.8%

Long-Term Price Volatility Vs. Market

How volatile is LHN's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LHN undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 41O (SGD0.19) is trading below our estimate of fair value (SGD4.03)

Significantly Below Fair Value: 41O is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 41O is good value based on its PE Ratio (3.1x) compared to the SG Real Estate industry average (13.9x).

PE vs Market: 41O is good value based on its PE Ratio (3.1x) compared to the SG market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 41O's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 41O is overvalued based on its PB Ratio (0.6x) compared to the SG Real Estate industry average (0.5x).


Next Steps

Future Growth

How is LHN forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

45.0%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as LHN has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has LHN performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 41O has high quality earnings.

Growing Profit Margin: 41O's current net profit margins (18%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: 41O's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: 41O's earnings growth over the past year (194.6%) exceeds its 5-year average (12.7% per year).

Earnings vs Industry: 41O earnings growth over the past year (194.6%) exceeded the Real Estate industry -45.7%.


Return on Equity

High ROE: 41O's Return on Equity (20%) is considered low.


Next Steps

Financial Health

How is LHN's financial position?


Financial Position Analysis

Short Term Liabilities: 41O's short term assets (SGD108.9M) exceed its short term liabilities (SGD94.2M).

Long Term Liabilities: 41O's short term assets (SGD108.9M) do not cover its long term liabilities (SGD126.0M).


Debt to Equity History and Analysis

Debt Level: 41O's debt to equity ratio (54%) is considered high.

Reducing Debt: 41O's debt to equity ratio has increased from 35.5% to 54% over the past 5 years.

Debt Coverage: 41O's debt is well covered by operating cash flow (72.8%).

Interest Coverage: 41O's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


Next Steps

Dividend

What is LHN current dividend yield, its reliability and sustainability?

6.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 41O's dividend (6.72%) is higher than the bottom 25% of dividend payers in the SG market (1.97%).

High Dividend: 41O's dividend (6.72%) is in the top 25% of dividend payers in the SG market (4.77%)


Stability and Growth of Payments

Stable Dividend: 41O has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 41O's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.8%), 41O's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Kelvin Lim (42 yo)

6.67yrs

Tenure

S$2,554,000

Compensation

Mr. Lung Tieng Lim, also known as Kelvin and Lin Longtian, serves as an Executive Chairman and Group Managing Director at LHN Limited since July 2014. Mr. Lim is primarily responsible for the business deve...


CEO Compensation Analysis

Compensation vs Market: Kelvin's total compensation ($USD1.92M) is above average for companies of similar size in the SG market ($USD384.55K).

Compensation vs Earnings: Kelvin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lung Tieng Lim
Executive Chairman & Group MD6.67yrsS$2.55mno data
Bee Choo Lim
Deputy Group MD & Executive Director6.67yrsS$957.00kno data
Swee Cheng Yeo
Chief Financial Officer5.67yrsno datano data
Sze Peng Wong
General Manager10.67yrsno datano data
Chit Sing Ng
Joint Company Secretary3.75yrsno datano data
Eng Wee Chong
Joint Company Secretary0.92yrno datano data

5.7yrs

Average Tenure

43.5yo

Average Age

Experienced Management: 41O's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lung Tieng Lim
Executive Chairman & Group MD6.67yrsS$2.55mno data
Bee Choo Lim
Deputy Group MD & Executive Director6.67yrsS$957.00kno data
Li-Ling Ch'ng
Lead Independent Non-executive Director3.75yrsS$66.00kno data
Chee Hiong Yong
Independent Non-Executive Director6yrsS$62.00kno data
Ka Leung Chan
Independent Non-Executive Director3.75yrsS$70.00kno data

6.0yrs

Average Tenure

47yo

Average Age

Experienced Board: 41O's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LHN Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LHN Limited
  • Ticker: 41O
  • Exchange: Catalist
  • Founded: 1991
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: S$74.452m
  • Shares outstanding: 402.45m
  • Website: https://www.lhngroup.com

Number of Employees


Location

  • LHN Limited
  • No. 02-18, 10 Raeburn Park
  • Singapore
  • 88702
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
41OCatalist (Singapore Exchange Catalist Market)YesOrdinary SharesSGSGDApr 2015
1730SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2015

Biography

LHN Limited, an investment holding company, provides real estate management services in Singapore, Hong Kong, Indonesia, Thailand, Cambodia, Myanmar, and internationally. It operates through three segments...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 11:10
End of Day Share Price2021/03/05 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.