A Spin Off with 90% Revenue Growth trading at 11x EarningsLum Chang Creations LimitedMarket Cap - S$154 millionLum Chang Creations is an urban revitalization specialist business that was spun off in July and has had 93% revenue growth while trading at 11x earnings.Lum Chang Creations was spun off of Lum Chang holdings and IPOed in July this year. Lum Chang Holdings still owns the majority of the total shares as they have 224,000,000 shares which is 71% of the total shares outstanding. Lum Chang Creations was founded in 2018 and operates in Singapore. It also has a small subsidiary in Malaysia but 99% of the revenue is still from Singapore.They separate their work into three segments. Conservation and restoration, interior fit-out, and addition & alteration (A&A) works.Conservation and Restoration - LCC specializes in the preservation, restoration and protection of historic and culturally significant buildings. One of the projects LCC is currently working on is restoring the National Museum of Singapore specifically fixing the outside of the building and repairing structural elements of the building.ADDITION & ALTERATION - building modifications and upgrades which includes structural changes, layout reconfigurations, and electrical upgrades.INTERIOR FIT-OUT - LCC provides end-to-end interior solutions from design through construction for commercial offices, retail stores, hospitality venues, and galleries. The company can also manufactures custom wood furniture and fixtures through its subsidiaries to support high-end interior projects. LCC’s Brandsbridge subsidiary specializes in luxury retail interiors and has completed fit-outs for boutiques along Orchard Road.The restoration and conservation segment is the highest-quality part of the business, operating in a smaller niche with far less competition than traditional fit-out or A&A works. Hundreds of contractors in Singapore technically hold the BCA licenses required for conservation work (CW01 General Building and CR06 Interior Decoration)but less than 1% of CW01 contractors and 3% of CR06 contractors have carried out any conservation projects in the past five years. Very few companies have the expertise, track record, or specialized manpower needed to execute heritage restoration at a high level. Lum Chang Creations employs 40 artisan craftsmen dedicated specifically to conservation and restoration work, while the more general work is subcontracted.“Restoration requires artisan skill. We have workers who spend hours carefully removing paint to reveal a single motif. That’s not something you outsource to general labor.” - Mr Lim Thiam HooiAccording to the Independent Market Report in the company’s IPO prospectus, the Singapore URS market was estimated at S$380–450 million in 2024, and LCC held approximately 14.4%–17.0% market share. FinancialsWhile the business was created in 2018 only the financials from 2022 and on are public. Since 2022 revenue has grown from S$14 million in 2022 to S$113 million in 2025 which is a 100% CAGR. LCC’s growth since 2022 has been from building trust and credibility in the market. After completing their first major conservation project, the award-winning restoration of St. James Power Station, developers and government agencies began to see them as one of the few companies capable of handling complex heritage work. Since 2022 they have been awarded a series of much larger, higher-value projects, such as Clarke Quay Block B, conservation shophouses along Orchard Road and Club Street, and the National Museum of Singapore restoration. While they have low gross margins hovering around 20%, they have great operating margin being between 11%-14% the past three years jumping from just 4% in 2022 when they had less restoration work.They are able to have higher margins than most construction companies due to more niche projects and their asset light model. They outsource most of their project work, and in 2024 more than 90% of their cost of goods sold went to subcontractors. For restoration work and projects like museums or heritage buildings, they rely on a core team who handle the detailed, high-skill tasks. Because their work focuses on interiors, restoration, and A&A instead of heavy new construction, they also avoid spending money on expensive machinery, which helps keeps the business asset-light.CEOThe CEO is Mr Lim Thiam Hooi, who was the co-founder of Lum Chang creations in 2018. He has been in the building and construction business for 35 years and has been overseeing projects for over 20 years.Whenever I research a spin off, I always look to see how much skin in the game the CEO has and in this case it’s quite a lot.Mr Lim Thiam Hooi holds 13.3% of the outstanding shares and he voluntarily locked up his shares are locked up for 10 years. This is a major confidence booster as he’s clearly in it for the long haul and has even called the company his baby in a interview.