Monday, November 21, 2011

WCT: Buy

Down but not out  Shariah-compliant
 
Maintain Buy. New jobs on tender is down to RM4b from RM10b three months ago. Nonetheless, the positives are that the current order book will last into 3Q 2013 while the property development business has chalked up extremely strong sales providing the earnings sustainability. Contributions from property investment will also receive a step-up from 2012 coming from the Paradigm mall. We maintain our forecasts and SOP-based target price of RM2.75. Moving into 2012, we think that WCT continues to stand a good chance in clinching major job wins.

Maybank research (21 November 2011)

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