- Wee Hur (SGX:E3B)'s FY24 revenue/adj. PATMI fell below our expectations, at 86%/78% of our FY24e estimates. Building construction (~32% of FY24 revenue) segment’s 2H24 revenue/operating profits fell 67%/19% y-o-y, as tenders remain competitive. Order book fell by 21% from June 2024.
- - Read this at SGinvestors.io -
- The ~S$300mil net proceeds, or ~76% of Wee Hur’s market capitalisation, would bring Wee Hur to a S$126mil net cash post-dividends distribution (FY24: net debt S$114mil). We maintain BUY with an unchanged Wee Hur's target price of S$0.62.
The Positives
Worker dorm drives revenue and profit growth.
- - Read this at SGinvestors.io -
- We believe the increase in bed capacity in FY25e will drive FY25e worker dorm segment revenue/adj operating profits by 13%/11% y-o-y.
~S$300mil net proceeds expected by 1H25e.
- Read more at SGinvestors.io.
