***Based on Thu's close price of 38.5 cents, Wee Hur's stock price has jumped over 10% since its investor conference on Sun!
AN INVESTOR at SIAS' mega conference over the weekend urged Wee Hur to be No. 1 in its industry. Being the dominant player was what investors want to invest in, he added.
He suggested that Wee Hur - a major construction company in Singapore - move into property development.
He spoke up after a presentation by Wee Hur executive chairman, Mr Goh Yeow Lian, and investor relations consultant El Lee at the Asian Investment Conference and Exhibition at Suntec City organized by SIAS.
On Sunday, Mr Goh and Mr Lee had introduced Wee Hur’s investment merits to the audience.
The investor who spoke did not know that at an EGM held on 19 May, Wee Hur’s shareholders passed a resolution for the company to venture into property development.
Just this month, Wee Hur successfully tendered for a land parcel at Woodlands Industrial Park for S$22.9 million.
The investor's message must have a struck a cord of resonance with Mr Goh, who draws great inspiration from a Chinese proverb - 步步为营，精益求精, which extols prudence and excellence.
That has been Wee Hur’s motto since the company’s inception 30 years ago
Mr Goh believes a strong spirit plays a key role in building up a strong business, which enabled the following to be articulated at the road show:
Wee Hur is considered large among local listed main construction contractors, and enjoys consistently strong growth.
It is an award-winning BCA grade A1 builder, which enables it to tender for public projects without ceiling on contract value.
It has a strong clientele pool. Its main customers are Ascendas Group, Ho Bee Group, Republic Iconic Hotel (unit of Millennium Copthorne Group) and HDB.
It has a strong track record of a well diversified project portfolio, ranging from various types of public buildings to private housing.
It also delivers on time. For example, it was able to construct Resort World’s corporate office building on Sentosa Island in a record 3-4 months.
Annual average growth of its net profits over FY2005 to FY2008 was as high as 72%.
1Q09 net profits were up a hefty 525% yoy, setting the stage for growth to continue into 2009. In fact, its 1Q09 net profits of S$4.3 million already amount to more than half of what the company netted in FY08.
Its order book stood at S$312.8 million as at 31 Mar 2008, and will last through 2011.
Earnings visibility is underscored by strong construction demand in Singapore, estimated by the Building Construction Authority to be S$22 billion to S$28 billion for 2009.
Its balance sheet is also strong – with negligible gearing and strong cash reserves, some S$31.8 million as at 31 Mar 2009.
And it pays dividends – a total of 2 cents per share for FY08, translating to dividend yield of 6% based on current share price of 35 cents.
For more on Wee Hur, read:
WEE HUR: Q1 profit up 525% on construction boom
WEE HUR eyeing growth via property development
