Whether it’s for a mass market or boutique condominium, chances are you will likely walk into an impressive-looking showflat with clever use of furniture and fittings. These makeshift buildings serve as not only physical brochures for new developments, but they also strive to transcend prospective buyers to an ideal state of living in order to invoke a sale.
Playing an important role in this transformation journey are interior fitting-out services companies like Lincotrade & Associates (Lincotrade). Established in 1991 and subsequently listed on the SGX in August 2022, Lincotrade (SGX Code: BFT), specialises in interior fitting-out solutions. It has completed over 200 projects for major private developers and construction companies in Singapore. For its expansion plans, Lincotrade recently incorporated a Malaysian subsidiary in August 2023 to explore business opportunities in the neighbouring state.
Here are 5 things to know about Lioncotrade & Associates if you’re interested in the construction sector.
Describe Lincotrade’s name change, main business segments and revenue drivers.
After Fabchem China Limited’s acquisition in a reverse takeover (RTO), Lincotrade was listed on 8 August 2022. With a history of more than 30 years, we have emerged as a specialist in interior fitting-out works with a track record in commercial premises, residential premises and showflats.
Since 2006, we have had our own in-house processing facility to process, assemble and manufacture carpentry products to support and complement our interior fitting-out services.
Targeting three different market segments in the construction industry, our business model provides revenue diversification and resiliency within our operating market.
In addition, we recently set up new subsidiaries in Malaysia and China to enhance the Group’s business model and harness new business opportunities. In January 2024, we have secured a successful tender for a factory in Singapore that is larger than our current premises that may cater to expected increase in business activities in the future.
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To what extent is the Group capitalizing on new norms and trends that could be game-changing in the future?
Lincotrade continues to work closely in collaboration with architects, designers and building professionals, hence we will proactively monitor industry trends, emerging technologies, and changing consumer preferences to stay at the forefront of design trends and gain credibility in the industry.
Particularly, sustainability is becoming increasingly important in interior design and fitting out projects, and we aim to utilise more eco-friendly materials, energy-efficient solutions, and sustainable design practices within our work processes and projects.
Being able to quickly adapt, pivot and respond to changing trends and client demands has been a key part of our success and we will continue to strengthen this corporate mentality to stay relevant and competitive in the industry.
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What are Lincotrade’s mid-to long-term expansion plans in Asia and which areas will be in focus?
Singapore will continue to be Lincotrade’s core focus and market. With optimistic growth expected from Singapore’s construction sector, there are various opportunities to harness with our business model targeting three different market segments within the construction industry.
On our overseas initiatives, the Group’s subsidiary in Malaysia intends to expand our business outreach with interior fitting-out works, while for our China subsidiary, we aim to strengthen our manufacturing capacity and enhance the quality of our products.
What impact would a change in interest rate have on the Group’s businesses, and how is it managing this risk?
With more than 30 years of business experience, the management team is mindful of interest rates volatility, hence Lincotrade has continuously adopted a prudent financial approach to support the growth of our business activities.
We will generally prefer fixed-rate financing and as a listed company, there are other channels to diversify the corporation’s funding sources. It is also part of our business focus to generate free cash flow in our business activities and for HY2024, Lincotrade generated S$4.6 million in cash flow from our operating activities.
We aim to stay vigilant in monitoring and managing interest rate risk, so as to protect our financial health and stability in an environment of fluctuating interest rates. We will generally repay our financial borrowings as planned and there has not been any issue in managing our interest payments and financial borrowings.
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Why should investors take a closer look at Lincotrade?
We have established good and stable business relationships with our suppliers that have allowed us to gain more reliability and flexibility in procuring our building materials.
We process, assemble and manufacture carpentry products in our own in-house processing facility, which has complemented and provided immense support for our interior fitting-out services. It will continue to provide us with better control over the quality, time and cost of processing, which in turn will ensure compliance with our customers’ specifications and timelines in future.
Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 20 February 2024 and have been republished with permission. You can read more on Lincotrade & Associates (SGX:BFT) on the SGX website.
Image Cover Credit: Lincotrade
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