WCT (BUY)
4Q Briefing: Fundamentals still intact
- Following last Friday’s briefing which was chaired by Mr. Taing (MD), we left reassured that WCT will strive to win more contract orders and yet ensure that margins are not unnecessarily sacrificed during the tendering process. WCT has targeted earnings growth of between 10-15% going forward.
- Overall, WCT has an outstanding order book of ~RM2.7bn, translating to ~2.2x FY11 construction revenue, and unbilled property of ~RM357m, translating to ~1.3x FY11s property revenue.
- Maintain BUY with a higher TP of RM3.36 from RM2.98 as we rollover our valuation to average FY12 and FY13 earnings based on 14x P/E multiple.
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