Stock Analysis: LHN | Lianhe Zaobao
LHN Group recommends a buy with a target price of 1.13 yuan, closing price of 1.05 yuan (+3.96%). Its co-living brand Coliwoo has received conditional approval from the Singapore Exchange for a listing on the main board, with an expected market value of 257 million to 359 million yuan, and financing of 77 million to 108 million yuan. Coliwoo's occupancy rate remains at 97%, with 2,184 existing rooms and an additional 776 under construction, expected to open in the third quarter of the 2026 fiscal year. The group's net debt is expected to decrease to 92 million yuan, improving its financial condition
LHN Group
- Recommendation: Buy
- Target Price: 1.13 SGD
- Closing Price: 1.05 SGD (+3.96%)
LHN Group announced that its co-living brand Coliwoo has received conditional approval from the Singapore Exchange for a mainboard listing. If successful, the group will hold no more than 70% of the shares, with an expected market capitalization of SGD 257 million to SGD 359 million, and financing of SGD 77 million to SGD 108 million.
Coliwoo's occupancy rate remains around 97%, with 2,184 existing rooms and an additional 776 rooms under construction, representing a 35% growth. This includes a resort-style co-living project at Jalan Loyang Besar with 382 rooms, expected to open in the third quarter of the 2026 fiscal year, attracting students from nearby higher education institutions and Changi Airport employees.
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In the future, Coliwoo is also expected to benefit from the demand for medical accommodation arising from the construction of hospitals in Singapore, as well as opportunities for some commercial areas to be converted into co-living units. Meanwhile, the group's self-storage (Work+Store) business is also resuming expansion. In July, the company sold the real estate project at 115 Geylang Road for SGD 25.8 million, with two additional assets pending sale.
As of the first half of the year, the group's net debt was SGD 226 million, which is expected to decrease to SGD 92 million after the listing of Coliwoo and the sale of the Geylang Road asset, significantly improving its financial condition and likely enhancing dividends. Based on the growth of the co-living business and valuation increase, we maintain a "Buy" rating and raise the target price to SGD 1.13. (Phillip Securities)
