Wee Hur Holdings: Strong performance across core segments

Robust performance across core segments in 2H 2025

Revenue increased by 52% year-on-year in 2H2025, led by strong performance across its property, building construction, workers’ dormitory and management segments. 

Property development (Singapore) segment reported 33% year-on-year increase in revenue, following higher progressive revenue recognition from Bartley Vue, which reached 84.9% completion in FY2025.

Workers’ dormitory reported revenue of S$50.8 million in 2H2025, an increase of 21% year-on-year, underpinned by robust performance from Tuas View Dormitory and Pioneer Lodge. Pioneer Lodge obtained Temporary Occupation Permit in 4Q2025.  This is the second workers dormitory with a capacity of 10,500 beds. With Pioneer Lodge, raising Wee Hur’s total capacity to 26,244 beds, +66.7% year-on-year.

Building construction recorded revenue of S$50.3 million in 2H2025, an increase of 172% year-on-year.  Higher revenue was led by progressive recognition from Mount Vernon Funeral Parlour and Teochew Building.  In addition, two new projects have  started to record revenue – Wycombe Abbey School and HDB ER Project. 

Revenue in FY2025 grew 47% year-on-year to S$295.4 million.

Gross profit grew faster at 63% to S$135.7 million, lifting gross profit margin to 45.9% from 41.3% a year earlier. The margin expansion was partly supported by a one-off performance fee of S$41.8 million from the  partial sale of Fund I units.  Construction and property development segments also recorded higher contributions.   

Net profit attributable to equity holders increased 27% to S$68.4 million, while overall net profit rose 17% to S$66.7 million. However, share of results from associates and joint ventures declined sharply to a loss of S$2.1 million compared with a profit of S$64.9 million in FY2024, following the partial disposal of Fund I which reduced the remaining stake to about 13%.

After adjusting for non-cash items and one-off gains, adjusted net profit surged to S$105.5 million from S$45.9 million in the previous year. The improvement reflects stronger underlying performance across the group’s core business segments, particularly construction and property development, which more than offset the reduced contribution from associates and joint ventures.Top of Form

Record order book and income visibility till 2031

• Building Construction

Building construction segment continues to perform strongly, supported by new project wins and a growing pipeline. 

In FY2025, Wee Hur won three construction contracts, including two HDB build-to-order contracts worth S$439.4 million.  In addition, it has a significant joint-venture stake in Wycombe Abbey International School. The construction project amount of Wycombe Abbey is S$148.5 million. As at FY2025, the construction order book increased to S$672.5 million, up 155% year-on-year.

The development at Upper Thomson will be added to the orderbook in FY2026. Order book is projected to rise further to around S$935.0 million in FY2026, providing strong revenue visibility over the next few years. The majority of projects are external contracts, reflecting its ability to secure work beyond its internal developments.

Current pipeline of projects is scheduled for completion between 2026 and 2030, including developments such as Bartley Vue, Wycombe Abbey School, and several HDB projects. This diversified project timeline supports sustained construction activity and underpins its medium-term earnings visibility.

• Development and investment properties in Singapore

Wee Hur entered into  joint venture to develop Wycombe Abbey School Singapore, representing a strategic entry into the premium international education sector. With a planned capacity of 1,800 students, the school will be an extension of the prestigious UK-based Wycombe Abbey brand, catering to growing demand from both local and expatriate families seeking world-class education. This investment diversifies the portfolio beyond traditional real estate, tapping into Singapore's position as a regional education hub.

In FY2025, Wee Hur made significant advancement in development and investment properties pipeline. Wee Hur has been awarded the Upper Thomson Government Land Sales development (Parcel A). This 596- unit project is expected to be launched in the first half of 2027 and completed by the first half of 2031. Wee Hur holds a 50% stake in this development through an investment in joint venture. Given the limited upcoming supply and strong take-up of existing developments in the vicinity, it believes it is well-positioned to benefit from sustained demand in the area.

Wee Hur invested in the redevelopment of DoubleTree by Hilton Singapore. The targeted launch is in the fourth quarter of 2026, signals a bullish outlook on Singapore's hospitality sector. The redevelopment is expected to modernise the property and enhance its competitive positioning as tourism and business travel continue to recover and grow. This project strengthens the company's presence in the hotel and hospitality segment, capitalising on Singapore's strong appeal as a global travel destination. 

• Development and investment properties in Australia

For the development properties, Wee Hur is building a substantial land bank and securing Development Approvals to capture long-term Australian housing demand. 

1. Park Central Brisbane is a mixed-use project that secured development approval in 2024, with plans to refine the approval in 2026 to optimise the project's scope. 

2. The Cryna (I, II, III) Projects represent a sizeable pipeline of approximately 2,000 residential lots, with development approval targeted for the second half of 2026. 

3. Lowood One has already obtained its development approval for 358 residential lots, with infrastructure works expected to commence in the first half of 2026. These three projects collectively position the company to benefit from Queensland's sustained population growth and housing undersupply.

Investment properties are two projects in Purpose-Built Student Accommodation Fund II and Fund III (PBSA Fund II and Fund III).  Wee Hur’s stake in Fund II and Fund III are 30% and 20.1%, respectively.

1. Y Suites on Margaret, held under PBSA Fund II, is a 409-bed facility located in Brisbane that commenced operations in February 2025 and has already achieved an impressive 99% occupancy rate, demonstrating strong demand for quality student housing. 

2. 188 Grenfell under PBSA Fund III, a larger 708-bed PBSA development in Adelaide where construction began in the first half of 2025 and is targeted for completion by the fourth quarter of 2027 

Healthy liquidity and financial flexibility

It maintains a strong financial position, supported by healthy liquidity and ample debt headroom to pursue strategic growth opportunities. 

Cash and bank balances stood at S$250.8 million, bolstered by the issuance of Medium Term Notes (MTN) and proceeds from the partial disposal of Fund I. The Group also reported a robust interest coverage ratio of 8.4 times, reflecting its strong ability to service debt obligations.

Total borrowings and lease liabilities amounted to S$389.7 million, while working capital remained positive. The balance sheet strength provides flexibility for the Group to reinvest into its core platforms and support future expansion initiatives.

The Group has established a S$500 million MTN programme, of which S$205 million of fixed-rate notes due 2030 have been issued at an interest rate of 4.8%. The programme provides additional funding capacity to refinance existing borrowings, pursue growth opportunities, and manage foreign exchange exposure while deploying capital across its investment strategies.

2H FY25 dividend per share rose by 25% year-on-year

Wee Hur recommended DPS of 1.00 cents for 2H FY2025, an increase of 25% year-on-year. The higher dividend per share was driven by strong revenue growth across the segments.

Total dividend per share in FY2025 of 1.50 cents translates to dividend payout ratio of 28.5% of profit after tax and non-controlling interests.  Management continues to reinvest earnings in order to generate higher shareholders’ returns.   

Outlook

Wee Hur continues to strengthen the core businesses with record order book and income visibility till 2031.  To recap, order book of construction segment was S$673 million in FY2025 and expected to reach S$935 million in FY2026.  Property development will be driven by the three new projects secured in FY2025. The debt headroom will be deployed into selective government land sales (GLS) participation.   

Wee Hur is steadily building a portfolio of assets designed to secure long-term recurring income. These include the workers’ dormitory and purpose-built student accommodation (PBSA).  In FY2025, it has also diversified into education and hospitality through The Wycombe Abbey School Singapore and the DoubleTree by Hilton Singapore.  On the PBSA front, it has pared down a substantial stake in Fund I and actively rebuild scale with the launch of Fund III. These assets provide defensive earning streams that are relatively stable. 

In Australia, it is actively securing Development Approvals (DA) to capture long-term housing demand.   Wee Hur has assembled a sizeable residential land bank in Queensland.  It has secured DA for 358 lots at Lowood and a further 2,000 lots targeted at Cryna,. Management retains flexibility to monetise these assets through phased development, joint ventures, or selective divestments.

Maintain at Buy

Maintain at Buy with target price S$1.00.  Currently trading at FY2025 PE 9.8x and PB 0.94x, Wee Hur's share price has not fully reflected potential upside drivers, in our view. These include  successful stabilisation of Fund III, contribution from international school at Hougang and land rezoning projects in Australia.  As the projects develop, the potential contribution from these businesses will become clearer.  Cash flows from PBSA and PBWA will remain resilient against economic uncertainty. 

Our target price at S$1.00 is based on sum-of-parts on the core business and growth engines. At S$1.00, Wee Hur is trading at FY2026E PE of 13.7x and FY2026E dividend yield 1.5%.  The higher valuation compared with the companies in the construction industry reflects the potential upside drivers, diversified source of income and exposure to stable cashflows. 

Wee Hur is an attractive investment with quality assets to support steady cashflow from diversified sources.  By recycling capital, management aims to pursue new revenue streams in order to achieve a higher return on equity for the shareholders.

Key risks 

Key risks include economic, regulatory, interest rate, execution, and concentration. 

Economic and demand risk

A slowdown in economic activity, changes in employment conditions, or weaker student inflows could reduce demand for worker and student accommodation, affecting occupancy and rental growth. Currently, the elevated tariffs imposed by the United States, trade tensions between the United States and China and other geopolitical conflicts have led to heightened economic uncertainty. The company’s financial position may be affected if the demand for purpose-built accommodation is adversely affected, slowdown in new customers acquisition and longer receivables days, amongst others. 

Regulatory and policy risk

Worker dormitories and student accommodation are subject to evolving regulations on zoning, operating standards, levies, and foreign student policies. Any tightening could raise compliance costs or limit capacity and returns. The company has to be mindful of the regulatory and policy risk in Singapore and Australia, the two key markets which they operate in. For example, in 2024, Australia implemented a cap on international students in order to reduce the overall migration to pre-pandemic levels. The average occupancy rate fell to 82.7% in 2024, from 90% in 2023. However, the proposed cap on international students did not pass into legislation, resulting in a surge in demand for Semester 1 of 2025. 

Interest rate and financing risk

Higher interest rates increase borrowing costs and may pressure earnings, especially during development phases when gearing is elevated. Refinancing risk could also arise in volatile credit markets. Higher interest rates also raise the cost of acquisition, restricting the options to pursue opportunistic acquisitions.

Execution and development risk

Construction delays, cost overruns, or delays in achieving stabilised occupancy could defer cash flow generation and impact project returns, particularly for assets under development. In Australia, the company has obtained the development approval for Buranda Plot 2, Brisbane in 2024. However, the project is not viable for development due to the high construction costs. The company is exploring alternative options for the land parcel. 

Concentration and operational risk

Earnings are exposed to specific asset types and geographies. Operational disruptions, tenant concentration, or weaker-than-expected leasing performance at key assets could have a disproportionate impact on results. The company’s recurring income are mainly generated from workers’ dormitories in Singapore and students’ accommodation in Australia. In order to diversify the source of recurring income, the company is entering the hospitality business by acquiring Hotel Miramar at Robertson Quay. The company plans to upgrade and rejuvenate the asset with the launch of DoubleTree by Hilton in 2026.

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