LHN: Why Analysts Maintain a Bullish Outlook Post-Spinoff of Coliwoo

LHN Limited has captured investor attention this year, delivering a respectable 32% gain year-to-date in its stock price (67 cents).

It made headlines with a key change to the company’s structure and valuation by spinning off its co-living segment, Coliwoo, which serves foreign students, professionals and short-term visitors.

LHN retains a major 65% stake in Coliwoo, which remains its primary growth engine.

LHN briefing 12.25 LHN FY25 results briefing last week. Photo: Gem Comms

Now, as the company trades ~S$0.67, two analyst reports from CGS International and Phillip Securities maintain a bullish outlook on LHN.

Discover where they see LHN’s trajectory and growth potential.

Both CGS and Phillip Securities anticipate that the stock will deliver positive returns over the next year but both lowered their price targets following the spin-off of Coliwoo.

Metric	CGS Int’l	Phillip Securities
Rating	Add	BUY
Target Price	S$0.88	S$0.85
Current Price	S$0.67	S$0.67
Implied Upside	31.3%	26.9%

Coliwoo shared11.25 Kelvin Lim is the executive chairman of both LHN and Coliwoo.

Analysts' Key Views

Business Fundamentals (Revenue, Growth Drivers)

CGS: Analysts Tan Jie Hui and Lim Siew Khee believe that Coliwoo will remain a key engine, contributing approximately 40% of LHN's projected net profit for FY26.

Tan Jiehui 7.25 Tan Jie Hui, analystThe key driver is the acquisition of approximately 800 new co-living "keys" (rooms/units) annually.

CGS also notes LHN's plans to expand its self-storage business, "Work+Store," both through acquisitions and by converting existing facilities into air-conditioned storage units, which could potentially increase rents by about 20%.

Phillip Securities: Analyst Paul Chew also focuses on the robust expansion of Coliwoo, noting that the current pipeline of rooms under renovation or planning—around 2,214 rooms in total—is equivalent to 75% growth over the existing 2,933 rooms.

PaulChew Paul Chew, analystHe is bullish on LHN's outlook, driven not only by Coliwoo but also by new storage facilities and an improvement in the Facilities Management segment, which is expected to benefit from exiting loss-making car park operations in Hong Kong.

He also notes that recent earnings (2H25) were above expectations, driven by a jump in co-living profits.

How Cheap/Expensive the Stock Looks

CGS: CGS uses a P/E valuation, concluding that LHN currently trades at an "undemanding" valuation of about 8X its forecast core earnings for FY27F.

The analysts reiterate their target price using a 10x FY27F core P/E multiple.

Phillip Securities: It switched its valuation approach to a Sum-of-Parts (SOTP) method following the Coliwoo listing.

Instead of valuing the whole company using one formula, SOTP calculates the value of each distinct business unit—such as co-living, property development, and facilities management—separately and then adds them together to determine the total company value.

The analyst finds the valuations attractive, citing a high dividend yield of almost 6% and an adjusted price-to-book ratio of 0.9x.

Comparison Table:

Feature	CGS Int’l	Phillip Securities
Valuation Method	P/E Multiple (10x FY27F core P/E)	Sum-of-Parts (SOTP)
Main Positives	Robust Coliwoo expansion (800 keys/year); attractive P/E valuation (8x FY27F core P/E).	Steeper growth ahead driven by Coliwoo (75% pipeline growth); facilities management recovery; attractive dividend yield (~6%).
Risks	Falling occupancy/rental rates; limited availability of M&A targets.	Slower sales of property development units (food factories).

Risks

CGS: The primary risks highlighted are operational and execution risks, specifically a potential decline in occupancy rates or rental income, as well as the limited availability of suitable properties for the company's acquisition-driven growth model.

Phillip Securities: Risks include slower sales in the property development segment -- sales of food factory units in Tuas South Avenue 1 have been weaker than anticipated.