Maintain Buy with a RM3.10 target price. We reckon WSC’s venture into
palm oil operations in Congo is part of the Group’s agenda to anchor its
non-O&G operations once the O&G business spins off from the
Group. While this could provide long-term growth prospects, country and
operation risks are the concerns, for little is known of Congo’s
suitability for oil palm cultivation, its economic strength and
legislation stability. That aside, we remain positive on its
pipe-coating business. Our TP is based on 14x 2012 EPS.
Maybank Research 8 Feb 2012
Click here for full report
No comments:
Post a Comment