Lum Chang Creations (LCC), a leading urban revitalisation specialist in Singapore, is set to experience significant earnings growth, with projections indicating a 144% increase by the financial year 2025. This growth is attributed to the rising demand for conservation and interior fit-out works, spurred by the government’s commitment to preserving local heritage. LCC has initiated coverage with a “buy” recommendation and a target price of S$0.39, based on a 9.5x FY26 forecasted price-to-earnings ratio.
Founded in 2018, LCC has established itself as a dominant player in the niche market of urban revitalisation, holding an estimated 15.7% market share. The company has successfully completed high-profile projects, including the St James Power Station and the National Museum of Singapore. With a robust orderbook of S$123m as of 31 May 2025, LCC is poised for continued success.
The company’s impressive two-year revenue and earnings compound annual growth rates of 106% and 206%, respectively, from FY22 to FY24, underscore its strong performance. Key growth drivers include government incentives for heritage conservation, an increase in adaptive reuse of heritage buildings, and a thriving construction industry. The urban revitalisation sector is expected to grow at a 6.8% compound annual growth rate from S$380m to S$550m by 2027.
LCC’s business model boasts high margins and return on equity, with net margins around 10% and ROE above 30% over the past two years. The company maintains a strong cash position, with net cash of S$29m anticipated by July 2025. This financial strength supports its attractive dividend yield of 4.9% for FY26, making it a compelling investment opportunity.
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