• After Centurion Corp's stock surge in the past 1 year, Wee Hur Holdings is gaining attention for its workers' dormitory business too, especially with its new Pioneer Lodge approaching completion. See: 10,500-bed workers' dormitory to open soon: Another golden goose for this company
• Following a DBS Research report in July, CGS has just initiated coverage of the stock, saying: "Wee Hur is a beneficiary of Singapore’s construction upcycle and strong demand for PBWAs (Purpose Built Workers' Accommodation) and PBSA (Purpose Built Students' Accommodation)." |
Excerpts from CGS International report
Analysts: Natalie Ong & Lim Siew Khee
WEE HUR HOLDINGS
Finding its own niche while riding tailwinds
| ■ WHUR leverages on strong construction and property legacy to develop PBWA, PBSA and high ROI businesses, including fund management.
■ We like WHUR for its c S$700m order book, riding on the favourable construction cycle in Singapore. |
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| S$700m order book to ride SG construction upcycle |
Wee Hur Holdings’ (WHUR) construction orderbook reached c.S$700m after it secured two Housing Development Board (HDB) build-to-order (BTO) projects totalling S$439.4m in May 2025, extending its orderbook visibility to FY29F.
WHUR said it has the bandwidth, and intends, to take on 1-2 more projects totalling S$200m-300m in the next 12 months to bring its orderbook to S$1bn.
Public sector projects account for c.70% of current orderbook.
| New workers' dorm in Jurong |
New inventory in Singapore lifts PBWA revenue by 55% in FY26F.
The opening of WHUR’s 10,500-bed purpose-built workers accommodation (PBWA) Pioneer Lodge in Singapore by end-2025F will increase its PBWA bed inventory by 40% to c.26k beds.
Given the bed shortage in Singapore, we think the lease on WHUR’s Tuas View Dormitory (c.16k beds) would likely be extended by 3+3 years.
| Tuas dorm to be extended? |
| "Current share price has not factored in the lease extension. Our SOP-based valuations assume that the lease on Tuas View Dormitory will be extended for 3+3 years (from Nov 2026F to Nov 2032F). If Tuas View Dormitory’s lease is not extended, the TP would be S$0.73 (vs. S$0.91)." -- CGS |
Accordingly, PBWA revenue should be up c.55% in FY26F.
WHUR was the fifth-largest purpose-built student accommodation (PBSA) owner in Australia prior to monetising seven assets in Fund I (jointly owned with GIC) for A$1.6bn in Apr FY25.
WHUR is developing a PBSA (Grenfell) in Australia, which we believe will be injected into a new fund in the next few years.
| New biz opportunities |
Supplementing strengths through niche, higher ROI opportunities. With its core businesses on stable footing (excluding construction, c.45% of FY25F-27F revenue is recurring), WHUR is also pursuing higher ROI opportunities such as fund management, private credit and land subdivision developments in Australia.
Its track record, having executed c.A$2bn worth of PBSA deals in Australia, allows it to take a smaller stake when initiating new funds (no more than 30% stake), making it more capital efficient.
Its private credit and land subdivision strategy is more opportunistic in nature, with the latter offering WHUR the optionality to divest its stake after development approvals are obtained, instead of undertaking the development themselves.
We value WHUR using SOP given its multiple business segments.  Natalie Ong, analystWe believe its current share price has not factored in the extension of Tuas View Dormitory in FY26F. Initiate with Add as we believe WHUR is a beneficiary of Singapore’s construction upcycle and strong demand for PBWAs and PBSAs. Re-rating catalysts: new tenders for PBWAs/PBSAs in Singapore/Australia. Downside risks: non-extension of Tuas View Dormitory land lease; slow business sentiment impacting construction demand, demand for foreign workers, and PBWA occupancy/rents; restrictions on international students affecting Australia PBSAs. |
Full report here.
