Wee Hur was recently awarded a new $236.4 million build-to-order (BTO) project. The BTO project is expected to last till 4Q2029. Wee Hur has thus increased its previous construction order book value by some 90% to $499.7 million.
In turn, Yik has raised his FY2025 and FY2026 revenue forecasts by 9% and 26% respectively.
Wee Hur is also developing new properties in Australia. Wee Hur has obtained a Development Application (DA) for a 683-bed PBSA property. Construction will commence in 2H2025, and Fund III is expected to be set up for this asset by June.
Wee Hur also obtained DA for a 358-residential lot Lowood, under its Australia property development segment. Yik expects the sale of Lowood's residential lots to contribute to Wee Hur's FY2026 revenue.
See also: Wee Hur to divest PBSA portfolio for A$1.6 bil
The weighted average cost of capital (WACC) for Wee Hur's worker dormitory segment has risen to 13.4% from 9.7% as it is uncertain whether its Tuas View Dormitory's lease will be extended after it ends in November 2026.
Yik has cut his FY2025 patmi forecast to $85.2 million from $113.5 million due to a $26 million expected y-o-y decline in share of profits from joint ventures from the sale of PBSA Fund I.
According to Yik, Wee Hur is trading at an "attractive" discount to book value of 26%, as it plans to sell its remaining PBSA stake valued at $232 million, or 49% of its market capitalisation.
As at 2.40pm, shares in Wee Hur are trading 1.5 cents higher, or 2.9% up, at 54 cents.
