In November 2025, Lum Chang Creations announced $63.4 million worth of contract wins, lifting its order book to $160 million from $112.8 million as at June 2025. To Li and Lock, the company’s order win momentum is in line at 45% of their full-year expectations. The order wins will extend project cashflow into FY2028, they add.
While the analysts lowered their FY2026 revenue forecast to $134.3 million from $152.6 million to reflect a slower pace of order book recognition in the first half of the year, they are keeping their full-year order win assumption of $140 million as they assume potential new order wins in the second half of the year. In line with their lowered revenue estimates, the analysts have lowered their FY2026 and FY2027 earnings per share (EPS) estimates by 10% and 11% to $16.8 million and $18.9 million respectively.
Lum Chang Creations, along with its peers in the listed interior fit-outs space, Dezign Format, Kingsmen Creatives, Attika Group and Lincotrade & Associates, has seen growing investor interest since the analysts’ last update on Sept 2, 2025. “The FY2025 average P/E multiple across the five listed interior fit-out companies in Singapore has risen from 10.5 times to 18.5 times,” they note.
The analysts’ new target price is based on an FY2027 P/E of 12 times, which is at a premium to the FY2025 sector average due to Lum Chang Creations’ relatively higher return on equity (ROE) and larger order book compared to the other listed interior fit-out companies.
See also: JP Morgan ups CDL's target price to $10.75
In their view, downside risks include more intense competition in the urban revitalisation specialist (URS) space, which could lead to pricing competition and compressed margins, a shortage of skilled employees which could cause project delays, an unfavourable government policy, as well as defects in projects resulting in claims and onerous cost provisions.
As at 4.31pm, shares in Lum Chang Creations are trading flat at 50 cents.
