DBS initiates coverage on Wee Hur with ‘buy’, S$0.90 target price

[SINGAPORE] DBS Group Research on Friday (Apr 10) initiated coverage on property developer and construction group Wee Hur, with a “buy” and target price of S$0.90.

In their investment thesis, DBS analysts Ng Jia Hui, Derek Tan and Geraldine Wong cited Wee Hur’s diversification from its roots in construction. They pointed to its operations in property development, workers’ accommodation and purpose-built student accommodation.

The group also has a “proven track record in fund management” and has attracted “institutional validation” from GIC and US-based real estate developer Greystar, they added. Its workers’ dormitory segment is set for “significant revenue uplift”.

Shares of Wee Hur jumped 6.6 per cent or S$0.045 to S$0.725 as at 3.10 pm on Friday.

Wee Hur operates a portfolio of 6,779 student housing beds under the Y Suites brand across five locations in Australia and more than 25,000 beds in two large-scale workers’ dormitories in Singapore.

Its Tuas View dormitory, Singapore’s largest purpose-built dormitory, achieved 95 per cent occupancy in FY2025. The recently completed Pioneer Lodge adds 10,500 beds, with 67 per cent committed occupancy and is expected to achieve full occupancy by year-end.

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That will contribute S$30 million to S$40 million to Wee Hur’s revenue in 2026 and lift the segment to a “record revenue run rate”, said the analysts.

The company is a “proxy for construction growth in Singapore”, they added, but warned of risks due to rising construction costs in light of Middle East tensions and changes to Australia’s student visa policies or international enrolment caps.