Wee Hur posts six-fold jump in H1 net profit to $8.8m

By LI DAN WEI

BUILDER Wee Hur Holdings, which was listed on Jan 30 last year, recorded a net profit of $8.8 million for its first half year ended June 30, 2009, almost six times the $1.47 million it made for the previous corresponding six months.

The first half-year saw revenue more than doubling to $108.3 million from H1 2008’s $46.5 million. This surge was brought about by revenue recognition from a number of major projects now in their more mature stage of work in progress. In H1 2008, these projects were in their early stage of construction.

Wee Hur’s H1 gross profit soared from $4.34 million to $14 million, thanks to the revenue increase and a 3.6 percentage point increase in its profit margin to 12.9 per cent.

The group said it has maintained its strong financial position with negligible gearing as well as with cash and cash equivalents of $28.4 million. Net cash from operating activities recorded an inflow of $6.9 million in H1 – an improvement from the outflow of $2.0 million for the comparative year-ago period. Wee Hur said this reflected its prudent approach in managing working capital.

Earnings per share (based on post-invitation share capital on fully diluted basis) stood at 2.73 cents for the first half of this year, compared with 0.46 of a cent for H1 2008.

‘We were fortunate that despite the recession, we rode on the stronger wave of the construction sector and prevailed. Our good results have strengthened our foundation further with the build-up in our cash and bank balances,’ said Goh Yeow Lian, executive chairman.

The group proposed an interim dividend of one cent per share, unchanged from that for H1 2008.

Wee Hur said that it has a healthy balance of $248.9 million worth of contracts in its order book to keep it busy till FY2011.

Last month, the group made headway in its property development business by securing a land parcel at Woodland Industrial Park E5 for $22.9 million for the development of strata-titled units. It plans to launch the sales within the next 12 months. Revenue contribution from this project is expected to roll in over the next two years.

‘While we have outperformed FY2008 in just six months, we will not rest on our laurels but will continue to strive and bring greater value to our shareholders,’ added Mr Goh.

In Singapore, the current growth momentum in the construction and property sectors seems to be building up, registering a robust 24.4 per cent growth for Q1 2009, said Wee Hur.