Wee Hur

Wee Hur: 3Q14 net profit surged 19-fold y/y to $88.8m, on the back of a gross margin expansion to 43.3% (+30.9 ppts), while revenue spiked to $455.3m (+393%). The stellar results were underpinned mainly from full revenue recognition on completion of 60%-owned industrial development- Premier@Kaki Bukit, which obtained TOP in Aug 2014, as well as progressive recognition of its fully-sold residential project- Parc Centros. This brought 9M14 earnings to $102.5m (+680%) and revenue to $603m (+146%). Wee Hur's construction segment has an order book of $397.2m, which will provide project flow through FY17. Going forward, the group's development arm is currently in the midst of due diligence for its proposed $24m investment in Jiangsu, China, and has commenced development for its 60/40 JV of an industrial project in Woodlands, Singapore. Wee Hur's new dormitory business is on track to be fully completed and operational by Dec 2014, providing the group with a recurring revenue stream ahead. At $0.385, Wee Hur is valued at 1.2x P/B