Wee Hur Holding Limited

Technical BUY with +26.7% potential return
Last price : S$0.355

BUY with a target price of S$0.45, as the stock may continue its rebound after forming a bottom. A break above its declining 200-day EMA and a close above S$0.37 could suggest further upside.

A golden cross formation (50 & 200-day EMA) awaits should its 50-day EMA continue to act as support. Its positive directional index could continue to rise and correspondingly with its ADX.

Protective stops could be placed at S$0.315.

Wee Hur Next Big Project - Third Time’s The Charm?

Background
As an award-winning BCA grade A1 builder, Wee Hur Holdings is an accredited construction and property development company with over 30 years of operating history. Its recent industrial and residential property developments include Harvest@Woodlands and Punggol Central, which has been completely sold out.

Valuation
• Wee Hur Holdings (Wee Hur) is trading at 3.4x 2012 PE and 1.8x 2012 P/B.

Investment Highlights
• Accredited constructor and developer with a strong orderbook. Wee Hur is a BCA Grade A1 builder with a notable portfolio of projects that include JCube, DBS Asia Hub and Courts Megastore @ Tampines. As at 31 Dec 12, the company had a strong orderbook of S$527.8m that provides high earnings visibility till 2015.

• Bumper profit expected in 2014. As the completed contract accounting method is adopted for industrial development properties, Wee Hur saw a 750% surge in net profit for 2012 with the TOP and recognition of revenue for Harvest@Woodlands. Accordingly, investors can expect another surge in profit in 2014 with the TOP of Premier@Kaki Bukit (more than 95% sold), where Wee Hur owns