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Wee Hur Holdings' net profit up 82%

PROPERTY group Wee Hur Holdings posted a net profit of S$6 million for its second quarter, up 82 per cent from a year ago.

Revenue went up 55 per cent to S$54.8 million, while earnings per share stood at 0.66 Singapore cents – up from 0.36 cents previously.

This was mainly attributed to the partial recognition of gross profit from Mega@Woodlands.

A dividend of 0.4 Singapore cents was declared, compared with 0.3 Singapore cents a year ago.

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The group said that the sales status of its co-developing development, Parc Botannia, is about 60 per cent sold to-date. The group will monitor the market situation closely and will continue its effort to  sell the remaining units. The construction is in progress and is expected to be completed by 2020.

The sales of its industrial development, Mega@Woodlands, is  about 52 per cent sold to-date. It said that the group’s Rent-to-Own (RTO) scheme has helped prop the aggregate take-up rate to about 64 per cent including these RTO units.

 The group expects competition for building projects to be stiff. As at  June 30, 2018, its construction order book stood at approximately S$242 million, providing the group with a continuous flow of activity through FY2020.

While the outlook for the marine and offshore industry has improved with strengthening oil prices, competition in the workers’ dormitory space is still keen, said the group. The occupancy of the group’s Tuas View Dormitory is presently about 81 per cent.

As for its developments in Australia, the group said that the outlook of residential market in Brisbane remains slow. The group said that it will continue to monitor the market conditions closely to determine a suitable time to commence construction of the group’s residential development, Park Central One, and explore suitable development options for Buranda Plot 2.

Meanwhile, the construction of UniLodge@Park Central, a 1,578-bed PBSA in Buranda Plot 1 in Brisbane under the Wee Hur Purpose Built Student Accommodation Master Trust has been partially completed.

One of the blocks has achieved practical completion on  July 2, 2018 and has started its first student intake. The occupancy rate is encouraging,   said the group. The other block (Sky Tower) is targeted to be completed by third quarter of 2018.