No. 39 Kim Keat Road, which I drove to recently to meet Mr Goh Yeow Lian, is where Wee Hur Building is located.
Mr Goh and his siblings bought it for $3.4 million in 1999 during a downturn in property prices.
Being in the construction business, they had honed their instincts on market trends, and seized the buying opportunity when they came upon it.
They named the three-storey building, Wee Hur Building, after the company they founded 30 years ago.
Wee Hur Holdings, which listed on the Singapore Exchange in January 2008, has just reported its Q1 results for this year.
Net profit was $4.3 million, up 525%, on revenue of $45.4 million, up 96%, year on year.
Wee Hur’s stock price recently traded at 30 cents, up from 25 cents at the IPO, giving the company a market capitalization of about $96 million.
Seizing opportunity
Not bad for these siblings who started off using their parents’ home as their first registered office. The home address then was No. 39 too: It was a zinc-roofed wooden house on a farm in Lim Chu Kang where the family grew vegetables and reared, at various times, pigs and ornamental fish, to eke out a living.
Mr Goh and four founders – ie, two of his brothers and two brothers-in-law - started Wee Hur in 1980 with less than $10,000 each.
“It was an opportunity not to be missed. During the construction boom, profit margins were easily 30% - those days were the best ever," said Mr Goh, 55, the executive chairman of Wee Hur.
“We worked hard. I did everything – daytime I was at the construction site, nighttime I would be in the office doing up tender documents.”
The company’s early projects were small: its first job was only $480 – to patch up a window.
Subsequent jobs were fencing work worth a few thousand dollars, a $500,000 project to build a single-storey building in Paya Lebar for the Ministry of Defence, and the construction of the Boon Lay bus interchange which has since been demolished.
The progress of Wee Hur reflects the theme of a piece of framed calligraphy work at Wee Hur Building’s boardroom. The words mean: step by step with prudence to reach perfection.
Established track record
Through its established track record and competitive pricing, Wee Hur won tenders to refurbish landmark buildings such as the Sun Yat Sen villa in Balestier and the Old Parliament House.
It constructed a wide range of high-profile projects such as the Capricorn building in Science Park II, the Sengkang Community Club, and the Courts Megastore @ Tampines. Its major clients include the Ascendas Group and Ho Bee Group.
“We are committed to delivering projects within schedule. The Courts Megastore was built within a year, which is considered fast.”
Mr Goh said: “It all boils down to our people, who are competent and loyal. Many have worked with us for more than 20 years.”
Wee Hur employs over 100 staff full-time. As the main contractor for projects, it has many sub-contractors with specialised skill sets.
Amazing as it sounds for a company that operates in a highly cyclical industry, Wee Hur has never had a loss-making year. Mr Goh explained that Wee Hur has avoided tendering at 'suicide prices' just to secure work. It has also been selective of clients to avoid problems collecting payment.
Secrets to longevity
And after countless steps, the company has reached milestone after milestone, including upgrading its status from A2 to A1 last year to be eligible to tender for public projects of unlimited value.
As at the end of March this year, it has an order book of $313 million, which will keep it busy for the next two years.
When a business has thrived for as long as Wee Hur has, in an industry as competitive as construction, you are especially curious about the secrets of its longevity.
“Basically, it's about good management. How long this company can grow depends a lot on the management,” said Mr Goh. "They must be hardworking, know the trade well and able to seize opportunites. For example, our company IPO: Some companies take a few years to go IPO but we didn't. We decided on it within 2 weeks."
He added: "Good management sets the right direction: We wanted to be a quality builder and one which is able to complete projects on time. Our focus has paid off and we have become a preferred contractor."
It soon became apparent that 'good management' is a topic that Mr Goh wanted to emphasise. He had much to say about Wee Hur being able to change management styles as the company grew (such as by delegating responsibility), emphasise retention of talent and develop middle-management as part of succession planning.
"Everyone does his part, and we are very united," said Mr Goh. The company name was chosen to mean 'great unity'.
Mr Goh himself puts in 9 am-8 pm workdays, and works Saturdays too. Sunday is family time and he enjoys also walking for exercise in Bishan Park, which is near the condominium where he lives with his homemaker-wife, and their two sons and a daughter aged between 23 and 18.
“It’s a simple life. I don't golf,” he quipped. He will be busy enough as Wee Hur wins ever bigger jobs.
Just consider the $83 million public housing project in Sengkang called Compassvale Pearl that it began work on in February this year and will complete in May 2011.
And Wee Hur is seeking shareholder approval this week to venture into buying land, developing property on it and marketing the completed units.
For Wee Hur Holdings' Q1 results statement, click here.
