In his Dec 2 report, Chan notes strong demand for LCC’s conservation and restoration services with the company’s latest two contract wins worth $63.4 million in total. The contract wins, which come from public and private sectors — Orchard Road Presbyterian Church worth $31.5 million and the Registries of Civil and Muslim Marriages Building worth $31.9 million — brings LCC’s order book to $160 million and will provide revenue visibility till 2028.
The Orchard Road Presbyterian Church contract is expected to be completed in November 2027 while the Registries of Civil and Muslim Marriages Building contract is scheduled for completion in January 2028.
Chan also highlights other positives such as LCC’s asset-light model that provides a high return on equity (ROE) of over 35% and its position as a beneficiary from a “promising urban revitalisation specialist (URS) industry” and healthy project pipeline.
These factors have led the analyst to add LCC as one of his “top picks” to Lim & Tan Securities’ client portfolio for November 2025. LCC joins other names such as Tiong Woon and KSH Holdings under the construction category.
See also: Analysts more confident on DFI’s Retail prospects following recent inaugural investor day
With this, Chan is now expecting LCC to report earnings of $17.9 million in FY2026, 35% higher than his previous forecast. The new earnings estimate translates to an “attractive” forward P/E of 8.4 times, the analyst points out.
Chan’s new target price represents an upside of 44.3% to LCC’s share price of 48.5 cents at the Dec 5 close.
