LHN share price rocketed 270%!

January 27, 2025 sgwealthbuilder 11 Views 0 Comments

Lifetime Membership Since 2020, LHN share price rocketed 270%, making it one of the best performers among SGX small cap. Whilst the supersonic form of LHN share price is certainly impressive, I suspect this counter is largely under the radar of most Singapore investors given the prevalent market’s preference to invest in US tech stocks or STI stocks. In this article, I will share my thesis on LHN share price and analyze if this local homegrown company is worth to invest in.

In my course of identifying local companies doing Electric Vehicle (EV) charging system, my research led me to LHN. In my previous article, I wrote that CSE Global has this capability but CSE’s business focus is largely in the US market whereas LHN’s Energy Business mainly focuses in Singapore market. What caught my eye was the performance of LHN’s Energy Business, which recorded 190% year-on-year increase in revenue for FY2024, making this business segment the best performer among the Group’s diversified business portfolio.

Before proceeding with the breakdown on LHN’s financial performances in recent years, it may be useful for investors to have a better understanding of LHN’s business profile. The Singapore company has a history dating back to 1991, with its core capability in space optimisation. LHN strategically acquires and refurbishes old and under-utilized industrial, commercial and residential properties into highly usable space. The company also engages in property development and provides a full spectrum of integrated facilities management services and car park management services. The Energy Business offers sustainable energy solutions, including the electricity retailing business, provision of electric vehicle charging stations and installation of solar power systems.

LHN share price was given a boost on 14 November 2024 when the company announced that it received in-principle approval from the Singapore Exchange (SGX) for the proposed transfer of its Catalist listing to the bourse’s mainboard. On that fateful day, LHN share price surged from $0.36 to $0.54 on 16 December 2024. The red-hot form of LHN share price was also attributed to the profit guidance issued by the company on 15 November. The company revealed that it expected to “record a net profit before tax (“Profits”) for FY2024 of no less than approximately S$50 million from continuing operations”. These announcements combined to provide a formidable tailwind for LHN share price.

Given the recent run up of LHN share price, investors must be wondering if this counter has become too expensive. Based on the 5-year data, the P/E ratio is just 5.03 whilst the Price/NAV averaged about 1.26 at the point of writing. These data suggest that the share is not expensive. Nonetheless, from the growth perspective, the company’s track record has been a mixed bag as it recorded inconsistent revenue and profit growth in the past 5 years. In this article, I will share my insights on the outlook of LHN share price in 2025.Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested in LHN share currently. Whether LHN share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

Strong upside of LHN share price

After losing my pants investing in a penny stock – China Enersave – I am cautious to venture into small cap stocks that are perceived to have high growth potential. With a market cap of just $217 million and with LHN share price being traded at around $0.50, this is a penny stock. So I am not going to hype up this counter and claim that “this time it’s different”. However, LHN appeal to me because [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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