Lum Chang H1 earnings surge to S$7.3 million despite lower revenue

Group is set to release its financial results for the first half-year on or about Feb 12

[SINGAPORE]   Lum Chang Holdings (LCH)   : L19 +2.68% announced in a Thursday (Jan 15) profit guidance that it expects a &ldquo significant improvement&rdquo in net profit for the first half of FY2026 ended Dec 31, 2025, compared with the year-ago period. 

 

This is mainly due to stronger operating performance from its restoration and interior fit-out business   Lum Chang Creations (LCC)   : LCC +3.39%, explained the group. 

 

The urban revitalisation specialist was spun out of LCH after an internal restructuring in June 2025, and made its Catalist debut on Jul 21 last year. 

 

Post-listing, LCH has a 71.1 per cent stake in LCC. The managing director of LCC, Lim Thiam Hooi, holds a 13.3 per cent stake in LCC. 

 

The public holds the remaining 15.6 per cent.

 

LCH is set to release its financial results for H1 FY2026 on or about Feb 12, based on the Thursday filing. 

 

Lum Chang Holdings&rsquo joint venture company in Malaysia has entered into a venture collaboration agreement with the property investment arm of Tien Wah Press Holdings, a Bursa-listed company.to develop a data centre facility in Petaling Jaya, KL, Malaysia.

 

Both parties will develop, construct, fit-out, lease and operate a data centre on the land, while the collaboration agreement with MyTelehaus will see it being responsible for design, build, installation, testing and commissioning of M& E for the data centre.

 

The group says that the entry into this venture agreement is not expected to have any material impact on net tangible assets per share and earnings per share of the group for FY2026 ended June 30.

 

No available timeline has been provided for the completion of this data centre project.

 

Lum Chang Holdings has reported a net profit of $18.7 mil for the full year ended June 30, up 102% y-o-y. For the 2HFY2025, net profit grew 251% y-o-y to $12.1 million.

 

The group&rsquo s revenue declined 8% y-o-y to $462.9 million for FY2025, and 16% y-o-y to $223.8 million for the 2HFY2025.

 

The group says that revenue decline was mainly attributable to lower revenue generated from the construction segment of $78.3 million and property segment of $7.7 million.

 

Gross profit came in at $53.3 million for FY2025, a 30% y-o-y increase supported by improved contributions across key segments.

 

Other income increased 30% y-o-y to $3.8 million in FY2025, due to higher government grants and interest income from bank deposits.

 

Distribution and marketing expenses increased by 74% y-o-y in FY2025 mainly due to higher marketing expenses incurred for the group' s residential development in Malaysia, while administrative and general expenses increased by 18% y-o-y due to employee compensation.

Total borrowings decreased to $40 million as at end June from repayment of short-term borrowings and bank loans in FY2025.

 

As at June 30, cash and cash equivalents stood at $80.1 million, taking into account net cash generated from operations among others.

 

The directors have proposed a final ordinary dividend for FY2025 of 1.0 cents per share and a special dividend of 1.0 cents per share.

 

Newly-listed Lum Chang Creations (LCC) has reported earnings of $12.9 million for the full year ended June 30, up 173% y-o-y. For the 2HFY2025 period, earnings grew 429% y-o-y to $7.6 million.

 

The group&rsquo s revenue surged 93% y-o-y for FY2025 to $113.6 million, and 206% y-o-y for 2HFY2025 to $72.7 million.

 

This growth was primarily driven by additional revenue from ongoing projects and the commencement of new projects during FY2025.

 

LCC&rsquo s gross profit rose to $22.4 million in FY2025, mainly attributable to procurement savings from ongoing and new projects. As such, gross profit margin grew 1.6 percentage points to 19.7%.

 

Cash balances as at June 30 stood at $27 million, with cash generated from operations rising to $22.6 million in FY2025.

 

The group&rsquo s order book stood at $112.8 million as at June 30.

 

LCC&rsquo s board of directors has proposed a final dividend of 2.2 cents per share, representing 53.7% of earnings.

 

Lum Chang Holdings has formed a joint venture with a subsidiary of a Taiwan-listed company, for a construction project.

 

The partner is L& K Engineering Co, (Singapore Branch), whose parent company was founded in 1978 and listed in Taiwan, with a focus on building pharmaceutical cleanrooms and high-tech semiconductor facilities.

 

According to Lum Chang, the JV is formed to carry out the civil, structural and architectural works for a project in North of Singapore.

 

Lum Chang will hold 30% and L& K will hold 70% of this JV.