UOBKH lifts Lum Chang Creations target price on mainboard transfer, order wins

[SINGAPORE] UOB Kay Hian (UOBKH) lifted its target price for Lum Chang Creations on Tuesday (Jul 14) on the back of its mainboard transfer and stronger order wins.

The brokerage maintained its “buy” call with a S$0.51 target price, with its previous target price at S$0.39.

Lum Chang Creations transferred to the mainboard on Thursday after completing a placement of 35 million shares on Jun 30, raising gross proceeds of about S$11.4 million.

“This mainboard transfer also underscores management’s confidence in the sustainability of the group’s core business and its readiness to progress to the next stage of growth,” said UOBKH’s analysts.

The company’s May 19 announcement that its order book stood at about S$144 million as at Apr 30 was also cited as a reason by UOBKH for the target price upgrade.

Lum Chang Creations was spun off from mainboard-listed parent Lum Chang after an internal restructuring in June 2025, and made its Catalist debut a month later.

In February this year, it received in-principle approval from the Singapore Exchange for its mainboard transfer, with its managing director Lim Thiam Hooi noting the company’s desire to elevate its corporate profile, enhance its visibility among institutional investors and have a stronger platform for its next growth phase.

UOBKH noted that Lum Chang Creations had completed its bonus issue of 330 million new shares on a one-for-one basis, with bonus shares credited to shareholders’ accounts on Jul 13. As a result, the total issued share capital has increased to 660 million shares.

“This bonus issue supports Lum Chang Creations by enlarging its share base and improving trading liquidity,” said UOBKH. This will help it be ready for the broader institutional shareholder base on the mainboard, added the brokerage.

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The company’s “strong order book momentum” is also expected to continue to provide earnings visibility, with the S$21.7 million Covenant Evangelical Free Church and S$3.2 million Baba House contracts set to “enhance revenue visibility and provide earnings support over the next two years”.

Meanwhile, Lum Chang Creations’ inclusion in the MSCI Global Micro Cap Indexes – Singapore Index “underscores growing investor recognition of the group’s strategic direction, resilient business model and strengthening financial performance”, said UOBKH.