LHN eyes growth and valuations with spin-off and listing of logistics arm

Published Thu, Apr 21, 2022 · 05:50 AM

CATALIST-LISTED LHN Limited's spin-off and listing of its logistics arm LHN Logistics would give the logistics unit resources to grow and also provide greater clarity for investors to value its property and logistics segments, said Kelvin Lim, executive chairman of both entities.

Speaking to The Business Times in an interview, Lim said that the exercise is "more a restructuring rather than a fundraising", and noted that LHN Limited has been listed for many years, but its price-to-earnings ratio (PE) is "not doing great".

The group currently trades at a trailing PE ratio of around 4.8, and Phillip Securities analyst Vivian Ye had noted in Dec that it was trading lower than its peer average.

Lim added that investors think they are "neither a property service company nor a logistics compa…