Thanks to better cost management, better resource utilisation, as well as economies of scale, LCC's gross profit margin expanded by 12.4ppt to 33.5% in 1HFY26.
The company improved its dividend payout too, underscoring its "robust" financial position with a cash position of $46.7 million, for 1HFY2026, an interim dividend of 2.5 cents per share was declared, up 13.6% compared with FY2025 final dividend of 2.2 cents.
Tang and Cheong note that tn addition to delivering strong 1HFY2026 results, LCC was included in the MSCI Global Micro Cap Indexes – Singapore Index.
"The inclusion underscores growing investor recognition of the group's strategic direction, resilient business model, and strengthening financial performance. It is also expected to enhance LCC's visibility among international institutional investors, improve share liquidity, and broaden its shareholder base," state the analysts.
See also: CGSI maintains positive view on Ever Glory on order book wins
As at end of 3QFY2026, LCC has built up an order book of $144 million, thanks to new wins including a $21.7 million contract for Covenant Evangelical Free Church and a $3.2 million contract for Baba House at Neil Road.
"Collectively, these projects build upon the current vibrant project pipeline and enhance revenue visibility and provide earnings support over the next two years," the analysts note.
Tang and Cheong's revised target price of 51 cents is based on 13x FY2027 earnings, which they say is justified with the company's improving earnings visibility, sustained earnings growth and expanding orderbook.
Lum Chang Creations shares closed at 38 cents, unchanged for the day, and up 50% year to date.
