SINGAPORE (Nov 11): Property group Wee Hur Holdings recorded 3Q19 earnings of $6.9 million, representing an 84% jump from $3.8 million in 3Q18.
The earnings growth was in line with a 53% increase in revenue to $51.8 million, compared to $33.9 million a year ago. The increase was mainly to higher revenue contribution from the group’s construction, as well as Australian-focused Purpose-built Student Accommodation business.
Cost of sales increased by 43% y-o-y to $36.2 million, bringing 3Q19 gross profit to $15.5 million, 81% higher than $8.6 million recorded in the previous year.
However, during the quarter, the group recorded other losses of $4.8 million, compared to other gains of $2.8 million last year, due to increase in foreign exchange loss from the depreciation of AUD.
Share of profit of associated company saw a significant increase to $6.0 million from just $0.7 million a year ago. This relates to the recognition of the group's proportionate share of profit on a residential development, Parc Botannia owned by a joint venture company in Singapore.
As at end-September, the group’s cash and cash equivalents stood at $60.0 million.
As at Sept 30, 2019, the group’s construction order book stood at approximately $439.80 million, providing the group with a continuous flow of activity through FY2021.
On the outlook, the group is targeting to have about 5,000 Purpose-built Student Accommodation (PBSA) beds. It currently has secured five land parcels in Australia, while is also in the final stage of securing another land parcel.
Meanwhile, the outlook for Marine and offshore industry has improved with strengthening oil prices. Nonetheless, competition in the workers’ dormitory space is still keen.
Shares in Wee Hur closed at 21 cents on Monday.
