Wee Hur

Wee Hur: FY12 results above expectations. Revenue at $465.7m, +146%, mainly due to one of the industrial devt property, Harvest@Woodlands having attained TOP in Oct ’12, allowing the group to recognize full revenue and profit based on completed contract method. In addition, major construction projects entered their matured stage of work in progress and more new projects commenced work during the yr, allowing higher revenue recognition. Net profit at $95.6m, +754%, largely due to boost in gross margins from 13.8% to 31.0%. Order book stands at $527.8m, providing the group with a continuous flow of activity through FY15. For Wee Hur’s devt portfolio, - Premier@ Kaki Bukit, the other industrial devt, is more than 95% sold to date. TOP expected in 2014. - Urban Residences is now more than 90% sold - Parc Centros, launched in Jul ’12, is fully sold. TOP expected in Dec 2016. As such mgt expects the recent cooling measures to have very little impact. The group has also successful tendered for a collective purchase of Thomson View Condo via a JV with Lucrum Capital, and is now pending the result of a court adjudication arising as a result of disagreement from a few owners. Mgt declared a final div of 1 ct + special div of 2 ct. Together with interim div of 1 ct, this translates to a yield of 7.2%. Balance sheet remains healthy with net cash of $80.2m, translating to 20% of market cap. The stock trades at 4.0x P/E, 2.2x P/B.