Wee Hur trebles net profit to $13.1 million

SINGAPORE - Construction group Wee Hur Holdings more than trebled its net profit to $13.1 million from $4.1 million for the first nine months.

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Here is the full statement from Wee Hur Holdings Ltd:

Wee Hur Holdings Ltd, ("Wee Hur" or "the Group") (偉合控股有限公司), a property developer and BCA Grade A1 award winning builder, recorded a surge 220 per cent year-on-year (yoy) in its profit to shareholders to S$13.1 million for its nine months ended 30 September 2013 ("9MFY2013").

The Group's 9MFY2013 revenue improved 34 per cent to S$245.6 million mainly due to the increased contribution from its property development business. Revenue from the Group's fully-sold 65 per cent-owned Parc Centros is gradually being recognized, resulting in the 97 per cent yoy improvement in gross profit to S$31.8 million. The Group's 9MFY2013 profit to shareholder increased correspondingly, surging 220 per cent to S$13.1 million.

Property Development Business

The Group's second industrial development project, Premier @Kaki Bukit, is almost fully sold to date. The revenue of this industrial development will only be recognized upon receiving TOP (temporary occupancy permit) in 2014, in accordance to INT FRS 1151 . The Group's two residential development projects, Urban Residences and Parc Centros are both fully sold to date. Revenue from these residential projects will be recognized progressively. These two projects are expected to receive their TOP in June 2014 and December 2016 respectively.

In September 2012, the Group was successfully awarded a tender for a collective purchase of Thomson View Condominium. However, following objections from a few owners, the High Court of Singapore has nullified the en bloc sales of Thomson View in a written judgement released on 3 September 2013. The Group has sought legal advice and has decided not to proceed with the matter. A notice of rescission of the sales contract has been served and a full refund of the deposit paid is sought. A full refund of the stamp duty paid has also been applied to the Inland Revenue Authority of Singapore ("IRAS").

Construction Business

As at 30 September 2013, the Group's construction order book stood at S$326.3 million, comprising commercial, residential, industrial and public projects. These outstanding projects will provide the Group with continuous construction activities through FY2015. Some of the Group's ongoing projects include public housing projects such as Vista Spring@Yishun and Fernvale Riverbow in Sengkang; private residential projects such as Parc Centros and Urban Residences; and industrial development such as Premier@Kaki Bukit and Changi Business Park by Ascendas amongst others.

Dormitory Business

In October 2013, the Group set up a wholly-owned subsidiary, Wee Hur Dormitory Pte Ltd, with the intention to hold a 60 per cent stake in a joint venture company, Active System Engineering Pte Ltd, which has recently been awarded by Jurong Town Corporation ("JTC") to build and operate a 16,800-bed workers' dormitory at Tuas South Avenue 1. This proposed dormitory will cater to foreign workers in the marine, manufacturing and process industries. Construction of the dormitory will commence soon and is expected to complete in 2H2014. At a capacity of 16,800 beds, this proposed workers' dormitory will open a sizeable new recurring revenue stream for the Group.