Wee Hur Holdings

[Curiousparty]

Estimation of Net profit from Dorm business


Revenue of tuas view = 16800 x 320 x 12 x 0.95(occupancy rate) = 61.3 mil
Cost of rental = $1.12m x 12 = $13.44mil
Cost of running = 20% of revenue = $12.3mil does anyone have a better estimate of the running cost of dorm
Gross profit = $35.6 mil
After tax profit = $30mil.

Wee Hur's share of net profit = 60% x 30 = $18mil or
2 cents EPS

Is my above estimate sound?
Thank you.

[edwin]

Estimation of Net profit from Dorm business


Revenue of tuas view = 16800 x 320 x 12 x 0.95(occupancy rate) = 61.3 mil
Cost of rental = $1.12m x 12 = $13.44mil
Cost of running = 20% of revenue = $12.3mil does anyone have a better estimate of the running cost of dorm
Gross profit = $35.6 mil
After tax profit = $30mil.

Wee Hur's share of net profit = 60% x 30 = $18mil or
2 cents EPS

Is my above estimate sound?
Thank you.

worker dormitory will contribute positively from august 2014 onwards...and will help company give out 2 cents dividend for the next 5 years.....for fy 2014....the best will be premier@kaki bukit profit......are u aware ??

[Curiousparty]

The key risk to Wee Hur is that it is trading at quite a rich premium to its book NAV of only 25 cents....

In stock, we are always looking at relative valuation
There are other "more value for money" counters than Wee Hur at the moment...

Estimation of Net profit from Dorm business


Revenue of tuas view = 16800 x 320 x 12 x 0.95(occupancy rate) = 61.3 mil
Cost of rental = $1.12m x 12 = $13.44mil
Cost of running = 20% of revenue = $12.3mil does anyone have a better estimate of the running cost of dorm
Gross profit = $35.6 mil
After tax profit = $30mil.

Wee Hur's share of net profit = 60% x 30 = $18mil or
2 cents EPS

Is my above estimate sound?
Thank you.

worker dormitory will contribute positively from august 2014 onwards...and will help company give out 2 cents dividend for the next 5 years.....for fy 2014....the best will be premier@kaki bukit profit......are u aware ??

[BlueKelah]

I am sure with the exception of CuriousP, most of the other holders of weehur are all well aware of the RNAV of this stock, which is much higher than the reported NAV. Just like many other property counters with higher RNAV than reported. So it is not really trading at a premium yet. Fair value? probably. Read the previous poster link to nextinsight article on its valuation to get a better idea first.

Once the recurring income from dormitories kick in, it will be a solid 5+% yield at today's 39cent price for next few years. Given the volatile and fragile macro-economic environment, steady predictable income, good cash level, I would say at this price level, WeeHur is a rather good defensive yield play to prepare for the inevitable market crash/correction that will be coming sooner or later. Probably even better than some blue chips on the STI. There is also the possibility of further expansion of business in this new sector.

However the recent 24million investment into China market, though not significant and easily funded with cash, is rather silly as even Mr. Li Ka-Shing is dumping his asset over there in favour of europe.

-vested-

[Curiousparty]

Extract from Next-in-sight article.

" In a nutshell - From a value investing standpoint, Wee Hur's investing appeal is limited given the profit to be recognized has already been “priced in” and the company does not appear to be trading at a discount to its intrinsic value."

http://www.nextinsight.net/index.php/sto...buy-can-we

Even the author (at next in sight) was finding it hard to justify the 1.5 times price to book ratio (if I did not read wrongly)

The fact is that the share price might already reflect the RNAV (which is much higher than current book value by 60%!!!). Is it time to take profit and run? The stock is like running ahead of its RNAV (which is yet to be actually realized)

If the management really thinks their stock is "gold", they will do share buy-share to provide the assurance/signal to investors. Has Wee Hur done that?

[Curiousparty]

Let's talk in specific concrete terms.

Grateful if u could list out any other property related counters trading at such a rich premium to book NAV. (e.g. Roxy pacific?)

Has Wee Hur actually booked all the profits that would ensure the current book NAV eventually translates to the RNAV?

Given that these counters are already trading way above their reported book NAV or close to their RNAV, following a logical train of thought, isn't the investment merits of these counters much less desirable than counters (despite having booked all the profits) but are still trading way below their RNAV or currently trading very close to their book NAV?

Tks.

I am sure with the exception of CuriousP, most of the other holders of weehur are all well aware of the RNAV of this stock, which is much higher than the reported NAV. Just like many other property counters with higher RNAV than reported. So it is not really trading at a premium yet. Fair value? probably. Read the previous poster link to nextinsight article on its valuation to get a better idea first.

Once the recurring income from dormitories kick in, it will be a solid 5+% yield at today's 39cent price for next few years. Given the volatile and fragile macro-economic environment, steady predictable income, good cash level, I would say at this price level, WeeHur is a rather good defensive yield play to prepare for the inevitable market crash/correction that will be coming sooner or later. Probably even better than some blue chips on the STI. There is also the possibility of further expansion of business in this new sector.

However the recent 24million investment into China market, though not significant and easily funded with cash, is rather silly as even Mr. Li Ka-Shing is dumping his asset over there in favour of europe.

-vested-

[Xiaosaint]

Wee Hur awarded BCA Quality Mark "Star" Rating for Urban Residences

Urban Residences, a residential development project developed and constructed by Wee Hur, was awarded the Quality Mark "Star" rating for both the Developer and Builder categories by the Building and Construction Authority of Singapore. The "Star" rating is the highest rating under the Quality Mark Tiered Rating system. The Tiered Rating System for Quality Mark recognizes developers and builders for achieving quality excellence and distinguishes developers and builders who have achieved quality excellence beyond the high minimum standard specified in the QM scheme.


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[Muser]

The real catalysts to the stock are when revenues from Premier@kaki bukit and Tuas Dormitary are recognized later this FY.

Also, the prospect of a one-time bumper dividend due to these higher earnings, which by nature will be lumpy becos of accounting guidelines.

No compelling ROE, profits or biz model.

[Xiaosaint]

Firms must upgrade 10% of their work-permit holders to higher-skilled R1 tier by end-2016

SINGAPORE — A string of measures — comprising a mix of tightened requirements and help for firms — targeted at growing the pool of skilled and experienced workers and spreading them out in the construction sector was announced yesterday, as part of the Government’s latest efforts to pull up the sector’s lagging productivity levels.

Official data showed productivity in the construction sector grew by 1.2 per cent annually between 2010 and last year, far behind the Government’s target of growing productivity by 2 to 3 per cent annually by 2020.

Announcing the new upgrading requirement during the Business Excellence and Productivity award ceremony yesterday, Deputy Prime Minister Tharman Shanmugaratnam noted that the Government’s strategy to manage the growth of foreign manpower in the construction sector as part of its restructuring efforts has seen results.

The focus for the next stage is on raising the quality of the construction workforce, including bringing in more higher-skilled and experienced workers, he said.

To that end, construction firms must upgrade 5 per cent of their work-permit holders to the higher-skilled R1 tier by the end of next year and a further 5 per cent by the end of 2016 or forgo their chances of hiring new work-permit holders for up to one year. Companies that already have 15 per cent of R1 workers will be exempted from the upgrading requirements.

This phased upgrading requirement is in line with the new rule — announced by Mr Tharman in his Budget speech earlier this year — that will kick in on Jan 1, 2017. The rule requires all construction firms to have at least 10 per cent of R1 workers.

About three in five construction firms here meet the 10 per cent R1 requirement. For those that do not, the majority — around four in five — need only to upgrade one or two of their work-permit holders over the next two years to meet the requirement.

There are more than 10,000 construction firms in Singapore, employing about 300,000 workers. About 15 per cent of these workers are qualified as R1 workers, but they are unevenly distributed across firms. The Government hopes to raise the proportion of R1 workers to 30 per cent by 2020, a Building and Construction Authority spokesperson said.

To help firms bring in more higher-skilled workers, the Government will allow greater flexibility for firms to upgrade and retain their workers.

From Sept 1 next year, construction workers who earn a salary of S$1,600 or more and who pass a skills test can enter Singapore directly as an R1 worker. Currently, workers need four to six years of experience working here to qualify for the R1 status.

As for keeping skilled and experienced workers from leaving for other countries, the Government will also allow firms to hire construction work-permit holders who are at the end of their work-permit period, without these workers having to first leave Singapore. This will take effect from June 1 next year.

“This will enable firms to tap the experience these workers have built while on the job in Singapore, while reducing the firms’ search and hiring costs for skilled workers,” said Mr Tharman.

Responding to the new requirement, Singapore Contractors Association president Ho Nyok Yong said they were largely reasonable and the flexibility in hiring and upgrading workers would result in savings in terms of worker levies for firms.


I'm wondering how this new requirement will affect the construction industry and Wee Hur. More skilled workers more cost? But efficiency would probably improve, so less workers needed? Will we be better off from this requirement? Or would it just eat into the profit margin of the company?

-Vested-


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[BlueKelah]

3q14 EPS 11cents this past 9 months. NAV has risen to 33cents. Premier@Kaki Bukit TOP in August bringing in a truckload of cash.

Can expect at least 5 cents bonus div. as a 50% payout when full year results announced next year in early Feb 2015.

3Q2014 Results

This is the only property counter that is net cash on my list and the only one I would recommend to buy at keep at today's prices.

Expecting some action on Monday..