Lum Chang Creations H1 net profit more than doubles to S$11 million on strong operational performance

[SINGAPORE] Newly listed Lum Chang Creations (LCC) , the restoration and interior fit-out business of Lum Chang Holdings (LCH) , recorded a net profit of S$11 million for the first half ended Dec 31, 2025, up 104 per cent from S$5.4 million in the year-ago period.

The group attributed the strong performance to improved operational execution, despite higher overheads, it said in a bourse filing on Thursday (Feb 12).

Administrative and general expenses rose to S$4.4 million in H1 FY2026, from S$2.1 million in the previous corresponding period, mainly due to higher staff-related costs and professional fees associated with its Catalist listing on the Singapore Exchange last July.

Revenue for H1 FY2026 climbed 31 per cent to S$53.5 million, from S$40.8 million previously, driven by increased work progress recognised across ongoing projects.

Lim Thiam Hooi, managing director at LCC, said that the performance “demonstrates the strength of (its) specialised business model and ability to deliver value even amid a challenging operating environment”.

LCC was spun off from LCH following an internal restructuring in June 2025. Post-listing, LCH holds a 71.1 per cent stake in LCC, while Lim owns 13.3 per cent. The remaining 15.6 per cent is held by public shareholders.

Last month, LCH issued a profit guidance indicating a significant improvement in net profit for the first half of FY2026, largely due to LCC’s stronger operating performance.

LCC noted that it maintains a robust balance sheet. As at Dec 31, cash and cash equivalents stood at S$46.7 million, supported by operating cash flows and net proceeds from its initial public offering (IPO).

While the sector continues to face headwinds such as rising construction costs and labour constraints, the urban revitalisation specialist said that it remains committed to its asset-light strategy.

LCC’s order book as at Dec 31 stood at about S$132 million. This was underpinned by major contract wins secured in November last year, including the S$31.9 million redevelopment of the building that houses the Registry of Marriages and Registry of Muslim Marriages, and the S$31.5 million project for the Orchard Road Presbyterian Church.

The projects are expected to provide revenue visibility over the next two years.

In line with its regional expansion strategy, LCC has deployed part of its IPO proceeds to invest RM750,000 (S$242,330) in its Malaysian subsidiary Lum Chang Interior. The capital injection will support the unit’s application for unlimited tender qualification with Malaysia’s Construction Industry Development Board, enabling the group to pursue larger interior fit-out and refurbishment projects there.

Optimistic outlook

LCC’s board has proposed an interim dividend of S$0.025 per ordinary share for H1 FY2026. This represents a 13.6 per cent increase over the FY2025 final dividend of S$0.022 per share, “reflecting the board’s confidence in the group’s financial trajectory and its commitment to delivering growing returns to shareholders”, noted the company.

Its board had earlier indicated its intention to recommend dividends of at least 30 per cent of net profit attributable to shareholders for the financial year ending Jun 30, 2025, and the corresponding period next year.

LCC remains optimistic about opportunities in the built environment sector, particularly those arising from the Urban Redevelopment Authority’s (URA) master plan. The URA’s emphasis on adaptive reuse of heritage buildings is said to align with the group’s core expertise in conservation and restoration.

“As more modernist icons and heritage sites are identified for conservation, the group expects a vibrant project pipeline and remains confident in its financial performance for FY2026,” added LCC.

Separately, it announced that it has been added as a constituent of the MSCI Global Micro Cap Indexes – Singapore Index, effective after market close on Feb 27 as part of the February 2026 index review. The inclusion is expected to enhance the group’s profile among international institutional investors and improve trading liquidity.

Shares of LCC ended 0.6 per cent or S$0.005 higher at S$0.80 on Thursday, while LCH shares closed down 1.4 per cent or S$0.01 at S$0.71, prior to the results announcement.