IPO raises total gross proceeds of S$12.25 million, including S$8.75 million from new shares and S$3.5 million from vendor shares

 

[SINGAPORE] Lum Chang Creations (LCC) has drawn strong investor interest for its initial public offering (IPO), with one million offer shares about 47.3 times oversubscribed by retail investors. 

 

By the close of the public offer at noon on Thursday (Jul 17), the urban revitalisation specialist had received 599 valid applications for the offer shares. 

 

These applicants applied for an aggregate of 47.3 million shares application monies received amounted to about S$11.8 million, LCC said on Friday.

 

RHT Capital is the sponsor and issue manager, and CGS International Securities Singapore is the underwriter and placement agent for the offering.

 

LCC had offered 49 million shares at S$0.25 each, including 48 million offered under the placement tranche. These were managed by CGS International Securities Singapore, and were fully subscribed with application monies received totalling S$12 million, LCC said. 

 

Shares of LCC will begin trading on the Singapore Exchange&rsquo s Catalist board next Monday.

 

Based on valid applications for all 49 million invitation shares, the overall IPO was about two times subscribed.

 

LCC noted that the offering has received &ldquo strong interest and commitment&rdquo , including from institutional investors such as Lion Global Investors, Nikko Asset Management Asia and ICHAM Master Fund VCC. This highlights the company&rsquo s growth potential in Singapore&rsquo s urban revitalisation sector, it added. 

 

LCC was spun off from mainboard-listed property developer Lum Chang Holdings following an internal restructuring completed in June.

 

It specialises in urban revitalisation projects through conservation, restoration, interior fit-outs as well as addition and alteration works. It also provides aftercare services for certain retail projects, and manufactures wood furniture as well as fixtures for retail customers.

 

&ldquo Well-positioned&rdquo

LCC&rsquo s IPO has raised total gross proceeds of S$12.25 million, including S$8.75 million from new shares and S$3.5 million from vendor shares.

 

Based on the invitation price and the post-invitation share capital of the company of 315 million shares, its market capitalisation now stands at S$78.75 million.

 

Managing director Lim Thiam Hooi said the invitation will allow LCC to strengthen its capabilities and expand its market presence. 

 

He added that there is a &ldquo robust outlook for private sector projects in Singapore&rsquo s construction industry, and promising prospects in the urban revitalisation specialist industry&rdquo arising from government commitments to preserve Singapore&rsquo s heritage and promote adaptive reuse initiatives.

 

For instance, Lim believes LCC is &ldquo well-positioned to capitalise on emerging opportunities under initiatives from the National Heritage Board&rsquo s Our SG Heritage Plan 2.0&rdquo . The plan covers, among others, modernist building conservation and the potential designation of a second Unesco World Heritage Site in Singapore.

 

Lim previously told The Business Times that he sees this period as an opportune time to list, given that LCC is scaling rapidly and entering a more mature phase of growth.

 

He also shared then that net proceeds from the IPO are expected to support LCC&rsquo s growth plans, improve its visibility and allow the company to operate more independently.

 

The company&rsquo s board of directors intends to recommend dividends of not less than 30 per cent of the group&rsquo s net profit attributable to shareholders in each of the financial years ended Jun 30, 2025, and Jun 30, 2026. 

 

UOB Kay Hian analyst Heidi Mo has initiated &ldquo buy&rdquo on Lum Chang Creations, which is about to be listed on the Singapore Exchange (SGX) on July 21.

 

Mo, who has a target price of 39 cents, representing a 56% upside to the company&rsquo s initial public offering (IPO) price of 25 cents, sees several positives.

 

In her July 18 report, Mo noted that Lum Chang Creations is a dominant player in the urban revitalisation specialists industry with an estimated market share of 15.7%, according to research firm Converging Knowledge. The company also has a proven track record of completing various projects including St James Power Station, the National Museum of Singapore, Bedok Community Hospital and Singapore Marriot Tang Plaza Hotel.

 

Mo also believes the key growth drivers within the industry, which includes the government&rsquo s commitment to protecting local heritage buildings, the adaptive reuse of heritage property, an increasing number of conservation projects, as well as robust growth in Singapore&rsquo s economy and construction industry will lead to &ldquo robust earnings growth&rdquo for the company. On this, she points out that Lum Chang Creations generated an &ldquo impressive&rdquo two-year revenue and earnings compound annual growth rate (CAGR) of 106% and 206% respectively for FY2022 to FY2024.

 

&ldquo We expect a robust order book of $123 million as of May 31 to drive a strong earnings growth of 144%/12% for FY2025/FY2026 respectively,&rdquo she writes. Of the order book, about $34 million was awarded between January to May this year and the contracts are likely to be fulfilled in the next three months to two years, she adds.

 

Finally, Lum Chang Creations has a business model that enjoys high margins, sees high returns on equity (ROEs) and is cash-generative. The analyst notes that the company has been able to see &ldquo superior&rdquo net margins of around 10% and ROE of above 30% over FY2024 to FY2025 as it &ldquo focuses on developing and retaining highly-skilled employees with leadership capabilities&rdquo .

 

&ldquo This enables it to outsource lower skill job requirements to third parties, hence minimising excessive capex (capital expenditure) and opex (operating expenditure) needs,&rdquo she says.

 

She adds that the company operates in a niche segment with an oligopolistic market structure of only around five majors.

 

Furthermore, Lum Chang Creations has generated strong cash flows and will sit on a net cash of $29 million in July. The amount includes the $7 million in net initial public offering (IPO) proceeds, forming around 37% of its market cap.

 

Mo&rsquo s target price is based on an FY2026 P/E of 9.5 times, or a 10% discount to its peers&rsquo average. The company also offers an &ldquo attractive&rdquo dividend yield of 4.9% for FY2026, which is one of the highest among its peers.

 

Lum Chang Creations announced, on July 18, that its IPO was 2.0 times subscribed for all 49 million shares. The company&rsquo s public tranche of one million shares was 47.3 times subscribed, with 599 valid applications amounting to 47.3 million shares. All 48 million of the placement shares were subscribed. The public tranche amounted to $11.8 million while the placement tranche raised $12 million.

 

Based on the invitation price and the company&rsquo s post-invitation share capital of 315 million shares, Lum Chang Creations will have a market capitalisation of $78.75 million.

The newly formed entity, which started out as a subsidiary of mainboard-listed Lum Chang Holdings, is on an &lsquo upward growth trajectory&rsquo

 

[SINGAPORE] Urban revitalisation specialist Lum Chang Creations (LCC) is set to raise S$12.3 million in gross proceeds through an initial public offering (IPO) on the Singapore Exchange (SGX), with a market capitalisation of S$78.8 million post-listing.

 

&ldquo This is the best time for us to list,&rdquo said LCC managing director Lim Thiam Hooi in an interview with The Business Times.

 

He explained that the company is at an inflection point, scaling rapidly and entering a more mature growth phase.

 

Supportive government initiatives and favourable market conditions, he noted, make this an ideal window to go public.

 

LCC is offering 49 million placement shares at S$0.25 each, according to its final offer document filed on Wednesday (Jul 9). The public offer will close on Jul 17.

 

Shares of LCC will begin trading on the SGX Catalist board on Jul 21.

 

RHT Capital is acting as the sponsor and issue manager, while CGS International Securities Singapore is the underwriter and placement agent for the offering.

 

Net proceeds of S$7 million from the IPO will support LCC&rsquo s growth plans, improve its visibility and allow the company to operate more independently, Lim said.

 

The company&rsquo s directors intend to recommend a minimum 30 per cent dividend payout from its 2025 and 2026 profits to shareholders.

 

Recent restructuring

LCC was spun off from mainboard-listed property developer Lum Chang Holdings (LCH) following an internal restructuring completed in June. 

 

It specialises in urban revitalisation projects through conservation, restoration, interior fit-outs as well as addition and alteration (A& A) works. It also provides aftercare services for certain retail projects, and manufactures wood furniture as well as fixtures for retail customers.

 

Post-restructuring, LCH will hold 80 per cent of LCC, while Lim owns the remaining shares. 

 

Lim clarified that LCC will be operated independently, with the board of LCC making the final decisions.

 

He added that LCC has a distinct identity from LCH, which focuses on property development and civil infrastructure. 

 

In contrast, LCC positions itself as a solutions provider, taking on smaller-scale, niche projects in urban revitalisation &ndash a specialised segment with relatively few players.

 

Conservation work in demand

An independent report by market researcher Converging Knowledge estimates the market size of urban revitalisation specialists in Singapore in 2024 at between S$380 million and S$450 million, with LCC&rsquo s market share projected at 14.4 to 17 per cent. 

 

This sector is expected to grow at a compound annual growth rate of 6.8 per cent, reaching S$470 million to S$550 million by 2027.

 

This growth is supported by increased conservation shophouse transactions, strong government backing for tourism and culture, and the potential for more buildings to be identified for adaptive reuse as Singapore&rsquo s limited land supply makes continual new construction unsustainable.

 

Lim noted that many of these conserved properties require ongoing restoration and A& A works to convert them into functional spaces such as offices, retail outlets, or hotels. This positions LCC to benefit from a steady pipeline of projects, unlike one-off new builds.

 

In recent years, LCC has undertaken multiple conservation projects, including restoration works at St James Power Station during the Covid-19 period and A& A works at the Red Cross House.

 

The company is also currently working on ongoing projects such as the National Museum building.

 

Beyond conservation buildings, LCC is exploring opportunities in the high-end residential segment, including Good Class Bungalows, and in the retail sector.

 

Lim described LCC as being on an &ldquo upward growth trajectory&rdquo , supported by a robust order book of S$122.8 million as at May 31, 2025 with project visibility through 2025 and 2026. While 2027 remains uncertain, he believes there is sufficient time to secure new projects.

 

Sustainable growth

When asked about how LCC plans to communicate its appeal to investors given the niche nature of its work, Lim said the company&rsquo s &ldquo profit figures are self-explanatory&rdquo .

 

Based on current figures, the IPO is priced at a relatively modest price-to-earnings ratio of around five to six times.

 

He emphasised that LCC is not aiming to maximise its IPO valuation at the expense of long-term investor confidence. Instead, the company is focused on sustainable growth.

 

According to its unaudited financials, LCC saw its net profit rise 61.6 per cent to S$5.3 million for the first six months of 2025, from S$3.3 million in the corresponding period last year.  

 

Revenue for the same period also grew S$5.6 million or 16 per cent to S$40.8 million.

 

Lim noted that LCC&rsquo s revenue has grown significantly over the past two years, from around S$14 million in the 2022 financial year to S$59 million in FY2024, reflecting growth of around four times. He attributed this to the company&rsquo s successful project execution and its diversified client base, which includes both public and private-sector projects.

 

Looking ahead, LCC is exploring potential mergers or acquisitions of businesses that complement its offerings, such as those involved in carpentry. The company also has plans to expand into Malaysia and Indonesia.

 

Manpower as a strategic asset

Lim noted that LCC operates an asset-light model with a lean core team of highly skilled artisans, who are considered a strategic asset due to their expertise in carrying out intricate and historically sensitive restoration work.

 

Citing the National Museum as an example, he explained that restoring ornate features such as floral motifs requires artisans to carefully remove paint layers and recreate the original designs.

 

Lim also attributed LCC&rsquo s low staff turnover rate to its strong talent retention and ability to preserve institutional know-how, which he believes are key factors in controlling costs and driving the business&rsquo success.

 

He said: &ldquo My job is to make my staff feel a sense of belonging &ndash that they are not just employees, but that they belong to the company and the company belongs to them. This is like a family business.&rdquo

 

Lum Chang Creations, the interior contracting and urban revitalisation arm of Mainboard-listed Lum Chang Holdings, is seeking a listing on the Singapore Exchange&rsquo s (SGX) Catalist board.

 

The newly formed entity filed its preliminary offer document on June 23. It is slated to complete the registration of its offer document on July 9, when it will reveal its offer price, valuation and market capitalisation.

 

Lum Chang Creations, which comprises Lum Chang Interior, Lum Chang Decor and Lum Chang Brandsbridge, was formed through an internal restructuring exercise that transferred Lum Chang Interior into a new corporate vehicle for the spin-off listing.

 

Priding itself on being &ldquo one of the leading urban revitalisation specialists in Singapore&rdquo , Lum Chang Interior, a key subsidiary under Lum Chang Creations, provides niche conservation and restoration works, interior fit-out works, as well as additions and alterations (A& A) works.

 

Some of the company&rsquo s completed projects for conservation and restoration works include St James Power Station and the conservation warehouse at Clarke Quay. The firm is currently transforming and redeveloping a three-storey conservation warehouse at 2 Cavan Road into an eight-storey hotel and two units of conservation shophouses at 44 and 46 Club Street into a family office.

 

&ldquo Lum Chang Creations has grown rapidly and we have built a strong presence in the industry, especially in the conservation sector,&rdquo says Lim Thiam Hooi, Lum Chang Creations&rsquo managing director, in an interview with The Edge Singapore on June 30.

 

As such, the group believes that now is the &ldquo right time&rdquo for the company to &ldquo grow further&rdquo as an independent entity.

 

Given that its line of business is different from its parent, a spin-off listing would also allow Lum Chang Creations to focus on its own business growth while giving the company its own platform to raise capital and attract partners, Lim adds.

 

Furthermore, a listing would provide the company with more credibility and visibility, which helps them become better recognised in the market and ultimately provides them with more opportunities and invites to more project tenders.

 

Asset-light model built around people

Unlike its parent company, which is one of Singapore&rsquo s leading main contractors, Lum Chang Creations operates an asset-light model that does not rely on heavy equipment and machinery.

 

Instead, Lum Chang Creations operates within a more niche space that relies on a good team of skilled workers. And what sets the company apart from its competitors is its in-house team of artisans and skilled workers.

 

&ldquo We have our own artisan workers and we do our own urban revitalisation specialist work,&rdquo says Lim.

 

He adds that their staff&rsquo s know-how is what keeps costs down. This model also allows the company to remain nimble and scale up and down easily.

 

Beyond costs, Lim recognises that the company&rsquo s key assets are its people. During the interview, he shared that the company has a very low turnover rate of &ldquo almost zero&rdquo , with about 90% of his core team remaining with him since day one. This can be attributed to his philosophy, where he regards his employees as partners.

 

&ldquo Ownership is key,&rdquo he shares, adding that he treats his staff like family, which helps boost morale and engagement.

 

One example of the team&rsquo s cohesion can be seen in its restoration work at St James Power Station, which took place amid the Covid-19 pandemic. Due to the building&rsquo s heritage status, every brick had to be carefully conserved, making the project particularly labour-intensive. That project, which should have taken around 18 months, took two years instead due to the circuit breaker restrictions.

 

Lim recalls how the team pulled together during that period, with workers housed onsite and everyone pitching in to keep the project moving. &ldquo That&rsquo s what you do for your family and that&rsquo s why I treat them as such,&rdquo he says.

 

The company also invests in the long-term development of its staff, with its teams cross-trained and exposed to various types of projects. Lim says: &ldquo All industries require commitment and ownership. The minute you have it, success will follow.&rdquo

 

Sustainable demand for restoration works

In its prospectus, Lum Chang Creations reported earnings of $503,000 in FY2022 ended June 30, 2022. The company&rsquo s earnings rose to $4.5 million in FY2023 and $4.7 million in FY2024. Revenue from FY2022 to FY2024 grew from $14 million to $59 million. The company is also net cash.

 

Lim, who established Lum Chang Interior in 2018, attributes the company&rsquo s growth to the company&rsquo s competitive strengths. This includes a proven track record in completing and securing a wide range of public and private projects, its asset-light business model focusing on cost management, as well as its experienced and dedicated management team.

 

Following the Covid-19 pandemic, Lim says the company began seeing more jobs and an upward trend that he believes is sustainable.

 

He notes that the growth boils down to the fundamentals, given that Singapore is small and has limited land space for redevelopment.

 

Instead, owners are likely to opt for A& As, conservation and restoration works to maintain their properties, such as hotels.

 

Conservation and restoration are also in line with the government&rsquo s plans, with Lim highlighting the Urban Redevelopment Authority&rsquo s (URA) plans to preserve the Singapore Turf Club.

 

Lum Chang Creations is already seeing more business coming its way. In 1HFY2025, the company reported earnings of $5.3 million, surpassing the $4.7 million posted for the whole of FY2024.

 

&ldquo FY2025 is a good year. FY2026 [will also] be better. We are optimistic,&rdquo says Lim.

 

The company&rsquo s order book for its conservation and restoration, interior fit-out and A& A services stands at $142.6 million as at Dec 31, 2024, and around $122.8 million as at May 31. This year alone, new contracts awarded amounted to $34 million.

 

To Lim, the company&rsquo s next order book goal is at the &ldquo sweet spot&rdquo of $200 million after hitting $177.8 million last September. That amount is sustainable enough for its team of people, Lim notes.

 

Lim also sees the retail and commercial interior fit-out segment eventually forming a larger part of the business as he sees &ldquo potential&rdquo .

 

In for the long run

When asked why the company chose to list on the Catalist board instead of aiming for the Mainboard, Lim explains that the former is suitable for high-growth companies, and Lum Chang Creations is a fast-growing firm.

 

While the company&rsquo s ultimate aim is to be on the Mainboard, Lim believes in taking it a step at a time.

 

&ldquo To get ourselves listed is already a dream [and] we&rsquo re very close to realising that dream,&rdquo he says.

 

He adds that the company is in it for the long run by pricing its shares &ldquo competitively&rdquo .

 

&ldquo We are not going for a very high P/E ratio,&rdquo says Lim, adding that, unlike some of his Catalist-listed peers, Lum Chang Creations is not trying to max out the amount of funds raised during its IPO. Instead, the company will look at raising funds through placements in future.

 

At this point, Lim notes that the company is &ldquo very reasonable&rdquo in its pricing. Why? &ldquo Because we believe in making sure that [our] shareholders are taken care of,&rdquo he says.

 

While the company does not have a fixed dividend policy, it says it intends to recommend dividends of not less than 30% of its earnings for FY2025 and FY2026.

 

On the payout ratio, Lim believes the figure is &ldquo fair and reasonable&rdquo while providing the company with &ldquo enough capital&rdquo for future plans such as mergers and acquisitions (M& As) and regional expansion programmes.

 

At the moment, the managing director is considering some M& As, including businesses that are complementary to Lum Chang Creations&rsquo segments. The company is also setting its sights on operations in Malaysia and Indonesia, which may take place &ldquo very soon&rdquo after the listing.

 

As to his conviction with the business, Lim has volunteered to subject his shares to a 10-year moratorium beyond the contracted period of 12 months.

 

&ldquo I&rsquo m here to stay,&rdquo he says, adding that the business is &ldquo like a baby&rdquo to him.

 

Construction firm Lum Chang Holdings&rsquo interior fit-out business has lodged its preliminary offer document for the proposed spin-off listing on the Catalist board of Singapore Exchange(SGX).

 

The newly incorporated subsidiary, Lum Chang Creations (LCC), was created following an internal restructuring exercise to transfer Lum Chang Interior (LCI) into the group for the spin-off listing.

 

Lum Chang Holdings first announced plans to spin off LCI last November, which it then held 80% of shares in. The remaining 20% is held under Lim Thiam Hooi, the managing director and co-founder of LCI. Lum Chang said that LCI has seen &ldquo strong growth&rdquo in recent years. For the year ended June, LCI has won new contracts with yet to be recognised worth of some $177.8 million.

 

Lum Chang believes that the spin-off will help " unlock" the potential value of LCI and be weighed separately versus the other existing businesses of construction and property development and investments.

 

According to the offer document, Lum Chang Creations is one of the leading urban revitalisation specialists in Singapore with comprehensive capabilities in providing niche conservation and restoration works complemented by our expertise in interior fit-out works as well as addition and alteration (A& A) works.

 

Some of its completed projects for conservation and restoration works include St James Power Station and the conservation warehouse at Clarke Quay. It is currently transforming and redeveloping a three-storey conservation warehouse at 2 Cavan Road into a 8-storey hotel and two units of conservation shophouses at 44 and 46 Club Street into a family office

LCC operates on an asset-light business model by outsourcing part of its work to trusted contractors, suppliers, artisans, consultants and interior designers with whom they have long-standing relationships.

 

LCC plans to embark on regional expansion, offering its services to Malaysia. It intends to expand its portfolio of interior fit-out and A& A projects in the high-end residential sector, and explore acquisitions, investment opportunities, strategic alliances and/or joint ventures.

 

LCC&rsquo s earnings from FY2022 ended June 30 stood at $503,000, and grew to $4.723 million for FY2024. Revenue from FY2022 to FY2024 grew from $14.04 million to $58.97 million. LCC&rsquo s pre-invitation earnings per share for FY2022 was 0.18 cents, which grew to 1.69 cents per share in FY2024.

 

As at the latest practicable date, the group has cash and cash equivalents of $23.3 million. The group&rsquo s operations has so far been funded through internal and external sources including cash generated from the group&rsquo s operating activities, and credit facilities from financial institutions, credit granted by suppliers and capital investment from shareholders.

 

Lum Chang says that it will make further announcements as and when there are further material developments in relation to the spin-off listing.

Shareholders may get shares of the spinoff through distribution in specie

 

CONSTRUCTION company Lum Chang : L19 0% is mulling over plans to spin off its interior fit-out business in a listing on the Singapore Exchange&rsquo s Catalist board.

 

Lum Chang Interior (LCI) is a majority-owned indirect subsidiary of the company. Lum Chang&rsquo s current aggregate effective shareholding in LCI is 80 per cent, through its wholly owned subsidiary Lum Chang Asia Pacific. The remaining 20 per cent is held by LCI managing director and co-founder Lim Thiam Hooi.

 

LCI carries out Lum Chang&rsquo s interior fit-out business, with expertise in complex interior and retrofitting projects. It also specialises in conservation, restoration, and alteration services across a range of sectors including commercial, retail, food and beverage, and hospitality.

 

If the spinoff and listing are successful, Lum Chang shareholders may receive shares of the listed entity through a distribution in specie, said the company on Thursday (Nov 21) evening. Any decision on the distribution in specie will be made by the board at a later date.

 

And while the structure of the proposed spinoff has not yet been finalised, Lum Chang intends to retain at least 51 per cent of shareholding interest in LCI.

 

The move to have two separate listed companies will help to unlock the potential value of the interior fit-out and renovation business, Lum Chang said. This will also allow the underlying business and assets of the wider group to be better appraised. In turn, this will enable &ldquo the value of such businesses and assets to be better reflected&rdquo , the company added.

 

The spinoff listing may also attract new investors in either the group or LCI who are seeking opportunities in a more focused business model, said Lum Chang. This will create a &ldquo wider, deeper and more diverse investor base for the group as a whole&rdquo .

 

LCI has demonstrated &ldquo strong growth&rdquo in recent years, including its latest financial year ended Jun 30, 2024. The company noted LCI has secured several contracts for interior fit-outs, addition and alteration works, as well as new building erection, with about S$177.8 million in outstanding value of works yet to be reported as revenue.

 

Lum Chang said that the proposed spinoff is currently at the preliminary stage, and it is in the process of formally appointing an issue manager and legal advisers for the move.

 

However, even after obtaining the necessary approvals, Lum Chang&rsquo s board may still decide against proceeding with the separate listing or the proposed distribution in specie, if it is not in the interest of the company.

 

Lum Chang Holdings&rsquo subsidiary, Lum Chang Interior (LC Interior), has secured a contract for the provision of retrofitting works to operationalise a community hospital in Bedok. 

 

The contract, awarded by the Ministry of Health, is valued at approximately $26.9 million. This brings the total outstanding value of construction works for the group &mdash which has yet to be reported as revenue &mdash to approximately $177.3 million. 

 

According to a Sept 16 bourse filing, the scope of the contract includes the design, retrofitting and completion of building works including but not limited to all mechanical, electrical, plumbing and fire safety works.

 

The contract period is approximately six months long and is scheduled to commence in September. 

 

The contract is not expected to have a material financial impact on Lum Chang Holdings L19 &rsquo results for the current financial year ending June 30, 2025. 

 

In March, the group was awarded a contract for proposed conservation and restoration works to the National Museum of Singapore' s existing monument block, which brought LC Interior&rsquo s total order book to approximately $170.4 million.    

 

In February, Lum Chang Holdings reported earnings of $3.6 million in the 1HFY2024 ended Dec 31, 2023, 431% higher than the earnings of $684,000 in the same period the year before.

 

Lum Kok Seng, managing director of Lum Chang Holdings, was named in March for allegedly giving various gifts to then-Transport Minister S Iswaran between November 2021 and November 2022. Iswaran was subsequently handed eight charges. 

Earnings per share stand at S$0.0099, compared to a loss per share of S$0.0779 in H2 FY2023

 

CONSTRUCTION company Lum Chang : L19 -1.69% posted a net profit of S$3.7 million for the second half of its 2024 fiscal year ended Jun 30, reversing its net loss of S$29.3 million over the same period last year.

 

Revenue for H2 FY2024 rose 36 per cent to S$267.8 million, from S$196.7 million in the year-ago period. Earnings per share stood at S$0.0099 per share, compared to a loss per share of S$0.0779 in H2 FY2023.

 

The higher net profit was due mainly to cost savings from the finalisation of accounts with subcontractors and customers for completed construction projects, said Lum Chang on Tuesday (Aug 27).

 

Net losses in FY2023 were due to higher costs arising from prolonged construction periods and greater expenses for materials, labour and subcontractors.

 

Higher contributions from its construction business led the increase in revenue, the company said. However, this was partially offset by lower revenue from the property segment.

 

The construction business was boosted by improved levels of construction activity at ongoing projects as well as the commencement of new projects in FY2024.

 

Meanwhile, the property segment had lower revenue due to slower sales from developments in Singapore. Residential development sales in Malaysia were the main revenue contributors to the property business.

 

For the full year, net profit came in at S$7.4 million, a reversal of the S$28.7 million net loss in FY2023.

 

Revenue increased 27 per cent to S$500.4 million, from S$393.4 million in the previous fiscal year. Earnings per share stood at S$0.0196 per share, compared with a loss per share of S$0.0761 in FY2023.

 

The company recommends an interim dividend of S$0.005 per share, with a final dividend of S$0.01 per share.

 

Despite the growth in the construction sector, Lum Chang anticipates that challenging operational conditions will persist due to an increasingly competitive tendering environment, high material costs, shortage of manpower, and rising construction costs overall.

 

&ldquo The group&rsquo s construction division continues to remain focused on shortening delays and executing the order book on hand, while managing overheads and manpower requirements,&rdquo it said, adding that it will &ldquo pursue new projects selectively&rdquo .

 

As at Jun 30, Lum Chang&rsquo s outstanding value of construction projects in progress stood at S$1 billion. 

 

SHARES of Lum Chang : L19 -10.34% fell more than 10 per cent on Tuesday (Mar 26) after the company revealed that its managing director, David Lum, had &ldquo attended several interviews&rdquo with the Corrupt Practices Investigation Bureau (CPIB) to assist on the latest charges filed against Singapore&rsquo s former transport minister S Iswaran.

 

As at 9.54 am on Tuesday, Lum Chang had fallen as much as 10.3 per cent or S$0.03 to S$0.26. It later recovered to S$0.285, down S$0.005 or 1.7 per cent, with 50,000 shares transacted as at 11 am.

 

The counter ended the day at S$0.26, down S$0.03 or 10.4 per cent, with 56,000 shares changing hands. No married deals were recorded, according to ShareInvestor data.

 

In a response to Singapore Exchange&rsquo s queries late on Monday, the mainboard-listed company said that no charges have been filed against Lum, nor has any restriction been imposed on him by the CPIB. It also maintained that after considering Iswaran&rsquo s charges and Lum&rsquo s alleged involvement, the company deemed Lum suitable to carry out his duties and responsibilities in his current role. This is &ldquo unless there are subsequent developments which require the board and nominating committee to make a reassessment&rdquo .

 

Lum Chang&rsquo s latest statement was made after The Business Times reported that Iswaran was facing eight counts of obtaining valuable items worth S$18,956.94 in total from Lum, including a Brompton bicycle valued at about S$7,900.

 

Golf equipment, whisky and wine were among the other items.

 

Iswaran was transport minister when he allegedly obtained these valuables between November 2021 and November 2022. 

 

It was also during this period that Lum Chang&rsquo s subsidiary, Lum Chang Building Contractors, was dealing in the &ldquo addition and alteration works to existing Tanah Merah station and existing viaducts&rdquo with the Land Transport Authority (LTA).

 

LTA more recently stated that it had not awarded any contract to Lum Chang Building Contractors since 2019. 

Lum Chang Holdings L19 0.00% has announced that its subsidiary, Lum Chang Interior, has secured a contract for proposed conservation and restoration works to the National Museum of Singapore' s existing monument block.

 

The scope of the contract includes restorative works to the building' s ornamental facade, critical repairs addressing wear and tear issues of timber and structural elements, aimed to preserve the nationally significant building.  

 

The contract period is approximately 31 months long and commences early March, and brings LC Interior&rsquo s total order book to approximately $170.4 million.      

 

This contract is not expected to have a material financial impact on the Group&rsquo s results for the FY2024 ending June 30.

 

Lum Chang Holdings has reported earnings of $3.6 million in the 1HFY2024 ended Dec 31, 2023, 431% higher than the earnings of $684,000 in the corresponding period the year before.

 

Revenue rose by 18% y-o-y to $232.6 million, mainly due to the higher revenue generated from the company&rsquo s construction segment and partly offset by lower revenue from the property segment.

 

Revenue from the construction segment was up by 21% y-o-y to $221.6 million due to the higher level in construction activities during the period. The group had various on-going projects and commenced new projects in the six-month period.

 

Revenue from the property segment fell by 17% y-o-y to $10.0 million with no semi-detached units sold for the 1HFY2024, as they were sold out in the FY2023. This was offset by the increase in Malaysian revenue as more homes under construction were sold during the 1HFY2024.

 

Gross profit was up by 57% y-o-y to $22.0 million.

 

Profit before income tax was up by 19 times at $6.5 million from $343,000, mainly due to the improved performance from the construction segment.

 

As at Dec 31, 2023, cash and cash equivalents stood at $54.6 million.

 

An interim dividend of 0.50 cents was declared for the period, down from the 0.75 cents declared in the 1HFY2023. The dividend will be paid on March 15.

 

CONSTRUCTION player Lum Chang Holdings : L19 +4.41% expects to report a net loss for the year Jun 30, 2023, and expects to announce its full-year financial results no later than Aug 25, 2023.

 

In a guidance filed to the bourse Monday (Aug 14), the group said that the net loss was mainly due to increased costs for ongoing construction projects incurred by its construction arm.

 

&ldquo The increased costs were mainly due to prolonged construction period and higher materials, labour and subcontractor costs due to the pandemic,&rdquo it said.

The 19-storey hotel will be located along Orchard Road and is expected to have 246 rooms with ancillary facilities

SINGAPORE construction player Lum Chang : L19 0%&rsquo s wholly-owned subsidiary, Lum Chang Building Contractors, has secured a tender to build a 19-storey hotel along Orchard Road for S$110 million.

 

The contract was awarded by UOL Property Investments and is scheduled to be completed over a 36-month period starting from April next year. The hotel is expected to have 246 rooms with ancillary facilities, said the company in a bourse filing on Thursday (Dec 22).

 

The contract is not expected to have a material financial impact on the group&rsquo s results for the financial year ending Jun 30, 2023. The earnings from the contract will be recognised progressively according to the stages of its completion.

 

The latest contract win brings the total outstanding value of construction works yet to be reported as revenue for the subsidiary to about S$1.6 billion.