CGS International Securities
August 5, 2025

Wee Hur Holdings: Riding Singapore’s Construction Boom and Niche Accommodation Tailwinds

Introduction: A Multi-Sector Growth Story

Wee Hur Holdings Ltd (WHUR) is carving out a unique position in the Singapore and Australian markets by leveraging its legacy in construction and property to tap into high-growth sectors such as purpose-built workers accommodation (PBWA), student accommodation (PBSA), and fund management. With a robust S\$700 million order book, expanding recurring income streams, and strategic exposure to high ROI ventures, WHUR is poised for strong growth over the next several years.

Investment Highlights: Why Wee Hur is in Focus

• Strong Order Book: WHUR has secured two major HDB build-to-order (BTO) projects totaling S\$439.4 million, bringing its order book to approximately S\$700 million, with visibility extending to FY29. The company is targeting up to S\$1 billion in orders by adding 1-2 more projects in the next 12 months. Public sector projects constitute around 70% of the order book.
• PBWA Inventory Expansion: WHUR’s new 10,500-bed Pioneer Lodge in Singapore (operational by end-2025) will boost its PBWA bed inventory by 40%, reaching about 26,000 beds. This expansion is forecast to lift PBWA revenue by 55% in FY26.
• Australian PBSA Monetisation and Pipeline: WHUR was the fifth-largest PBSA owner in Australia before monetising seven assets in Fund I (jointly owned with GIC) for A\$1.6 billion. It continues to develop new PBSA assets with an asset-light, capital-efficient strategy.
• Diversified High-ROI Ventures: The company is supplementing its core businesses with niche opportunities in fund management, private credit, and land subdivision development in Australia, aiming for higher risk-adjusted returns and shorter lock-in periods.
• Valuation Upside: Target price of S\$0.91 based on sum-of-parts (SOP) valuation, representing a 30% upside from the current share price of S\$0.70. This assumes the likely extension of the Tuas View Dormitory lease.

Financial Performance and Forecasts: Robust Growth Trajectory

WHUR is forecast to deliver strong growth from FY24 to FY26, with revenue expected to rise 55% over this period, driven by both construction and accommodation segments.

• PBWA revenue is expected to grow 14% and 55% y-o-y in FY25 and FY26, respectively.
• Construction revenue is projected to surge by 47% in FY25 and 73% in FY26 as large projects like Bartley Vue and Bartley Beacon BTO are completed.
• Gross profit margin (GPM) rebounded to 41% in FY24 and is expected to stabilize at 37–42% in FY25–27, although construction revenue, which carries lower GPM, will comprise a larger share by FY26–27.
• Operating cash flow is forecast to remain strong, exceeding dividend payments, and the company is expected to turn net cash in FY25 after the divestment of the Australian Fund I assets.

Business Segments: Diversification and Capital Efficiency

WHUR’s business is structured into several key segments:

• Construction (31% of FY25F revenue): WHUR is a Building and Construction Authority (BCA) registered A1 contractor, allowing it to tender for unlimited value projects. Public sector projects dominate its order book, benefiting from strong government demand.
• Property (54% of FY25F revenue): This includes Singapore residential developments (23% of FY25F revenue) and PBWA (32%). In Australia, WHUR’s developments cover residential lots and PBSAs.
• Fund Management (14% of FY25F revenue): The company manages PBSA-focused funds in Australia, having successfully exited Fund I and currently managing Fund II. Plans are in place to seed new funds with a lower equity stake for higher capital efficiency.
• PBSA Operations (1% of FY25F revenue): WHUR operates the Y Suites PBSA brand, maintaining a presence in Australia’s student accommodation market.
• Alternative Investments: WHUR has deployed S\$33.5 million into alternative investments, including venture capital, private credit, and private equity, targeting specialist strategies in APAC’s low- to mid-market space.

Strategic Outlook: Growth Catalysts and Sector Dynamics

Healthy Construction Pipeline: – The construction order book, now at S\$700 million and targeting S\$1 billion, is underpinned by robust public sector demand (including HDB BTO projects). – The Building and Construction Authority forecasts S\$31–38 billion in annual construction demand through 2028, significantly above the 20-year average.
Accommodation Demand and Regulatory Tailwinds:
The PBWA sector faces a persistent bed shortage as Singapore’s Ministry of Manpower (MOM) upgrades dormitory standards, reducing market capacity during retrofits.
PBWA rents have surged to S$460/bed/month in 2024, 70% above pre-pandemic levels, and occupancy rates remain extremely tight.
MOM’s policy to add 45,000 PBWA beds over five years provides opportunities for new projects.
Australian PBSA: Monetisation and Re-Entry
Australia is grappling with an acute PBSA shortage, as international student numbers hit 794,000 in 2025, surpassing pre-pandemic highs.
WHUR monetized seven PBSA assets (5,662 beds) in Fund I for A$1.6 billion but re-entered the market with a 13% stake in the new trust that acquired these assets.
WHUR retains management of the Y Suites-branded PBSAs until end-2025, and is developing new assets to seed future funds.

Valuation: Sum-of-Parts Approach and Sensitivities

The SOP-based target price of S\$0.91 assumes:

• Construction business valued at 0.5x order book
• PBWA segment valued using DCF, reflecting shorter land leases (Tuas View lease assumed renewed for 3+3 years; Pioneer Lodge lease to end Dec 2035)
• Investment property (Grenfell PBSA) at 1x FY25 RNAV
• Property development at 0.6x P/B
• Fund management at 12x P/E (discounted vs. larger peers)
• 10% discount to SOP applied

Key Sensitivity: If the Tuas View Dormitory lease is not extended beyond Nov 2026, the target price drops to S$0.73, and FY26 core EPS would fall by 57%.

Peer Comparison: How Does Wee Hur Stack Up?

Key Risks: What Investors Should Watch

• Regulatory Risks: Changes to Australia’s international student rules could impact PBSA demand. Singapore’s tightening of PBWA standards may require further capex and temporarily reduce bed supply.
• Lease Extension: Non-renewal of the Tuas View Dormitory lease would materially impact earnings and valuation.
• Foreign Currency Risk: With significant Australian exposure, a depreciation of the A\$ against the S\$ would negatively affect earnings. Currency shifts also influence international student demand for PBSA.
• Market Dependency: Despite overseas expansion, the bulk of earnings through FY27 will come from Singapore.

SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats

Strengths

• Diversified portfolio across construction, property, accommodation, and fund management reduces vulnerability.
• Strong track record in Singapore’s PBWA and construction, and Australia’s PBSA sectors.

Weaknesses

• High dependency on Singapore market for near-term earnings.
• Short land lease on Tuas View Dormitory could create an income gap on non-extension.
• Long gestation periods and high capital requirements in property and construction segments.

Opportunities

• Singapore’s planned addition of 45,000 PBWA beds and Australia’s acute PBSA shortfall provide growth avenues.
• Fund management and alternative investments drive capital efficiency and higher ROI.

Threats

• Regulatory changes around student visas or dormitory standards.
• Economic slowdowns could dampen construction and accommodation demand.

ESG Practices: Commitment to Sustainability and Worker Welfare

WHUR is firmly aligned with Singapore’s push for workplace safety and environmental standards. The company has adopted advanced safety technologies (ePTW, biometric access, AI-powered surveillance), achieved Green Star 5-star ratings for new accommodation projects, and maintained ISO 14001:2015 certification. Its PBWAs have proactively met the Dormitory Transition Scheme standards ahead of the 2030 deadline, positioning the group as a leader in compliance and sustainability.

Leadership Team: Seasoned Management Driving Growth

• Goh Wee Ping (CEO, Wee Hur Capital & CIO, Group): Oversees fund management and new business strategies, with a focus on PBSA in Australia.
• Lim Poh Choo Janet (CFO): Over 25 years of finance and accounting experience.
• Lu Tze Chern, Andy (CEO, Construction): Leads the construction arm with extensive industry experience.
• Goh Chengyu (CEO, Development): Drives land acquisition and project management for property development.
• Goh Cheng Huah (Director, Investment and Development, Wee Hur Capital): Focuses on land acquisition, project management, and PBSA operations.

Conclusion: Building on Strengths, Positioned for Growth

Wee Hur Holdings offers investors a rare blend of stability and growth, underpinned by a robust order book, expanding accommodation portfolio, and strategic diversification into high-yield, capital-light ventures. The company stands to benefit from macro tailwinds in both Singapore and Australia, and is well-positioned to capture new opportunities amid ongoing sector transformation. With a target price of S\$0.91 and a clear strategy for capital efficiency, WHUR is a compelling stock for investors seeking exposure to construction, property, and niche accommodation sectors in Asia-Pacific.
Stock Ratings Summary

• Add: Total return expected to exceed 10% over the next 12 months.
• Current price: S\$0.70 | Target price: S\$0.91 | Upside: 30.9%