For the six months ended Dec 31, 2025, adjusted patmi spiked by 81% y-o-y to $50 million due to higher contributions from a 20% increase in bed capacity for the group’s worker dormitories. The higher adjusted patmi was also due to the higher recognition of external construction projects and revenue recognition from Wee Hur’s Bartley Vue property.
Building construction revenue for the 2HFY2025 also surged by 172% y-o-y to $50 million thanks to higher recognition of its $673 million order book, which is expected to last over four years. Operating margins for this segment improved by 10 percentage points y-o-y to -7% in FY2025. This is expected to improve in FY2026, supported by higher recognition of higher margin external projects.
With Bartley Vue achieving 84.9% completion in FY2025, Chong expects the group’s Singapore property development revenue to decline on a y-o-y basis in FY2026, although he expects recurring revenue to be supported by the additional 10,500 beds to its worker dormitories. Revenue is also expected to be propped by a “small contribution” from the 344-key DoubleTree hotel, which is tipped to be completed by 4Q2026.
To the analyst, a share price catalyst would be the monetisation of Wee Hur’s 30%-owned purpose-built student accommodation (PBSA) Fund II, a single asset fund of 409-bed Y Suites on Margaret.
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“In our SOTP (sum-of-the-parts) model, we removed Mega@Woodlands property development and included Wee Hur’s 50% stake in the $614 million Upper Thomson Road GLS (government land sale) site,” Chong writes.
“We also included Wee Hur’s stake (estimated 20%) in the 344-key DoubleTree by Hilton hotel, and Fund III which is backed by a 708-bed Australia PBSA,” he adds. “With major construction projects like Changi Airport T5 and [the] MBS (Marina Bay Sands) Integrated Resort upcoming, we believe Wee Hur’s 15,744-bed Tuas View Dormitory’s lease will be extended beyond November 2026.”
