Wee Hur Holdings Ltd – Earnings turn more resilient November 10, 2026 4

PSR Recommendation: BUY Status: Maintained
Last Close Price: 0.59 Target Price: 1.08
  • JTC extended the land lease for Tuas View Dormitory (TVD) till 30 June 2029. TVD’s 15,744-bed represents 60% of Wee Hur’s worker dormitory bed capacity. The 10,500-bed Pioneer Lodge is expected to reach 97% occupancy in November this year (1H26 avg: 66%). FY26e worker dormitory revenue is expected to surge by 43% YoY to S$133mn.
  • NTU awarded Wee Hur to design, build, and operate a 1,398-bed student accommodation (PBSA) at NTU. Construction is expected to run from 3Q27e to 2029e, at an estimated cost of close to S$200mn. Assuming rental rates of S$1,000-1,500 per bed per month and 90% occupancy, we estimate an annualised EBITDA uplift of ~S$7.5mn (12% of FY25 EBITDA) from 2029e onwards.
  • We maintain BUY with an unchanged TP of S$1.08. In our SOTP, we reduced our WACC to 7.5% from 10.8% for worker dormitory segment by lowering equity risk premium, as TVD lease was extended. We lowered construction segment P/S multiple to 1.3x from 1.5x as the sector’s valuations remain compressed from elevated diesel prices. Nonetheless, most of Wee Hur’s construction projects, including the two HDB BTO projects, are past the piling stage which involves machinery with heavy diesel usage. We expect construction and worker dormitory segments to drive adj. PATMI to increase 50% from FY25 to FY27e. The 344-bed Doubletree hotel and 246-bed Hong Kong PBSA are also expected to be accretive to FY27e PATMI.

 

Key highlights
▪ Lease extension secured for 15,744-bed Tuas View Dormitory (TVD). JTC granted an
extension of land lease for TVD till 30 June 2029. TVD represents 60% of Wee Hur’s
worker dormitory bed capacity. TVD’s occupancy remains at 93%, and rental rates are
estimated to be about S$480-500. Wee Hur’s 10,500-bed Pioneer Lodge dormitory is
expected to reach 97% occupancy in November (1H26 avg: 66%). We expect FY26e
worker dormitory revenue to surge by 43% YoY to S$133mn.
▪ Entry into Singapore PBSA with 1,398-bed student accommodation awarded at NTU.
The PBSA will cater mainly to postgraduate students, with Wee Hur overseeing
marketing and leasing. Construction is expected to last from 3Q27e to 2029e. We
estimate construction costs to be about S$200mn. Assuming rental rates of about
S$1,000-1,500 per bed per month and 90% occupancy, we estimate the property to
bring Wee Hur an annualised EBITDA of ~S$7.5mn, 12% of FY25 EBITDA. Our SOTP
valuation excludes NTU PBSA for now, pending finalisation of the agreement.
▪ Unconditional option secured to develop 471-bed PBSA. Wee Hur secured the option
to acquire a 2,744 sqm site in Sydney to build a 12-storey, 471-bed purpose-built
student accommodation (PBSA). The acquisition is expected to be completed in 2H27e.
The property would add 7% bed capacity to Wee Hur’s existing 6,779-bed PBSA
portfolio. Our SOTP valuation excludes Nicholson for now, pending details on the
acquisition price and Wee Hur’s equity stake.

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About the author

Profile photo of Yik Ban Chong (Ben)

Yik Ban Chong (Ben)
Research Analyst
PSR

Passionate in looking for new ways to use data to tell a story, I enjoy chatting about economics and connecting complex financial data to real-world outcomes. I look forward to conducting quality fundamental research and exchanging insights with you during our in-house seminars and presentations. I graduated from the National University of Singapore with a Bachelor of Engineering (Industrial and Systems Engineering), Honours.

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