Since its RTO in 2022, Lincotrade & Associates (SGX: BFT) has been quietly strengthening its business  model with new growth catalysts in Singapore and beyond.

Established in 1991 and based in Singapore, Lincotrade has over 30 years of experience in the interior fitting-out industry and have established a proven business track record, working on various private and public sector projects over the years.

With interior fitting-out services at its core and a robust order book of S$53.9 million as at 31 December 2024, Lincotrade has embarked on various initiatives to tap new opportunities in new markets and business segments in Singapore, Malaysia and China in recent years.

>> In October 2023, Lincotrade obtained shareholders’ approval to diversify and venture into property-related businesses.

>> In January 2024, Lincotrade set up its China subsidiary to strengthen its manufacturing capacity and enhance the quality of its carpentry products.

>> In January 2024, the Group announced the receipt of a Letter of Award by JTC Corporation (“JTC”) dated 5 January 2024 in relation to the successful tender of a factory (“Tuas Factory”) located at 5 Tuas Avenue 12 Singapore 639025 with a bid price of approximately S$9.6 million.

Larger than its current premises at Sungei Kadut Loop, the Tuas Factory is a leasehold property granted by JTC with a tenure of 20 years commencing from 26 March 2024. The Tuas Factory is a 2-storey factory with a land area of approximately 6,498.50 square metres and a gross floor area of approximately 5,490.41 square metres.

Workers’ dormitories can be considered on this property, and the Group intends to relocate its operations and dormitories to the larger Tuas Factory with additions and alterations works are being undertaken to cater for the Group’s business activities and future plans.

>> In September 2024, Lincotrade’s subsidiary in Malaysia secured its maiden commercial project for an infrastructure development in Johor, Malaysia. During 6M2025, the Group has secured contacts with an aggregate value of more than RM10 million during 6M2025.

>> More recently in January 2025, the Group subscribed for a 30% equity interest in Linc Venture Land Sdn. Bhd., which has paid an option to purchase a piece of land in Kuala Lumpur, Malaysia for residential property development that is currently expected to launch by end of 2025 and complete construction by 2029.

Resilient financial performance

Lincotrade has reported profitable results since its RTO and their robust order book of S$53.9 million provides good revenue visibility ahead.

Notably, the Group continue to generate net cash from its operating activities. During 6M2025, the Group generated net cash of approximately S$4.1 million from operating activities.

On the balance sheet front, the Group increased its equity and total assets as at 31 December 2024, with total equity increasing to approximately S$10.8 million and total assets increasing to approximately S$41.7 million. Notably, the Group has cash and cash equivalents of approximately S$13.6 million as at end December 2024.

Dividend policy

To reward shareholders, Lincotrade announced the adoption of a dividend policy (in February 2024) to distribute at least 20% of the Group’s consolidated net profit attributable to shareholders of the Company, excluding non-recurring, one-off and exceptional income in respect of any financial year to its shareholders.

For FY2024, the Group announced an interim dividend of 0.38 Singapore cents for 6M2024 and a final dividend of 0.32 Singapore cents, bringing total dividends to 0.70 Singapore cents for FY2024, which translate to a dividend payout of 52.6% of the Group’s consolidated net profit attributable to shareholders of the Company.

Small Cap, Big Ambitions

Lincotrade’s story mirrors Singapore’s own trajectory—small, agile, punching above its weight, where this 30-year-old firm is leveraging on its track record and regional grit to build scale and diversity.

As construction demand holds steady at S$31-38 billion annually ahead, Lincotrade’s blend of core capabilities in interior fitting-out services and cross-border expansion strategy makes a compelling investment case.

Disclosure: Analysis based on company filings and market data. Not investment advice.