Friday, July 13, 2012

WCT: Maintain Buy - Secures a sizeable highway job

Maintain Buy. WCT's recent job win to widen a stretch of the Nilai-Seremban highway for MYR391m has lifted its job wins year todate to MYR1.1b, and its outstanding construction order book to MYR2.87b (+16%). This raises its earnings visibility - we estimate MYR29m net profit (3.5sen EPS) contribution into end-2014. We however maintain our forecasts which have imputed job win prospects. WCT is still a Buy with an unchanged MYR3.15 SOP-based target price (15x 2012 earnings plus a 20sen increment from the KLIA2 IC concession).

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Source: Maybank Research - 13 July 2012

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