08 November 2014

Wee Hur - Another Record Year this Year - November 2014

According to the latest quarterly report release yesterday, Wee Hur showed a great improvement in both revenue and net profit for 9mth period ended September 2014, as one of its Industrial project obtained TOP on August 2014. Wee Hur easily achieved S$102 Million net profit with 3 months to go for current financial year. As this is a record year for Wee Hur, I believe that the dividend payout will not be lesser than 4 cents as per paid during FY2012.

I would like to say thank you to my friend who introduced this counter to me, as I would not know if it could achieve this good result this year as most of the revenue can be recognized after the TOP (e.g. HDB, EC, Commercial, Industrial, foreign properties etc). This makes us more difficult in predicting / forecasting the revenue as well as the profit for a property development company, and it will show a very volatility of the revenue and profitability trend since 2011 (the implementation of FRS115).

Nonetheless, I believe that it is now bear market for real estate market, as there is lesser transaction done on market. But it may also a good time to buy the land piece at cheap price as what Wee Hur did for an acquisition of industrial land in Woodlands which it targeted to launch it by next year (FY2015). I believe that with prudent care and good execution, it will achieve a good take up rate for the projects on hand. It maybe a good time for long term investors who try to accumulate those cheap property stocks before the market rebound later (perhaps 2 years time after Singapore GE??).

As for its venture in China, it is still in Due Diligence stage so that I believe that the profit may not be kicked in soon. As for dormitory business, it will be in full operation only by December 2014 and let us see if it could provide a good recurring income to the group or not from next year onward.

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