Friday, November 18, 2011

WCT RM2.38: Buy

Shortfall again
Buy call maintained, but with a lower target price. 9M11 net profit of RM114.5m (+15% YoY) made up just 68% of our earlier full-year forecast and 70% of consensus. Construction works recognition was slower than expected and 3Q results included another RM3m of forex loss lifting total forex loss to RM16m for 9M11. We lower our 2011 net profit forecast by 8% and 2012-13 forecasts by 12-15%. This puts our TP, which is largely earnings based, at a lower RM2.75 (-11%).






Maybank research (18 November 2011)

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