WCT: Maintain Buy - Bonus comes early

• Maintain Buy. WCT's proposed bonus and free warrant issue will help to improve its shares liquidity with smaller value tradeable lots and strengthen its balance sheet as the warrants are exercised. It will also provide cheap equity funding for working capital. We retain our Buy call on WCT with an unchanged MYR3.15 SOP-based TP (15x 2012 earnings plus a 20sen increment from the KLIA2 IC concession).

Click here for full report

Source: Maybank Research - 7 Sept 2012

WCT: Maintain Buy - Big job win!

• Maintain Buy. WCT's latest job win in Oman of MYR800m being its effective share, has lifted its job wins year todate to MYR1.9b, closing in to our MYR2b forecast for the year.
• This further extends its earnings visibility. We however maintain our forecasts which have imputed an estimated MYR2b job win prospects for the year.
• We reiterate our Buy call on WCT with an unchanged MYR3.15 SOP-based target price (15x 2012 earnings plus a 20sen increment from the KLIA2 IC concession).

Click here for full report

Source: Maybank Research - 17 August 2012

WCT: Maintain Buy - 1H12: No Surprises

• Maintain BUY. WCT's 1H12 net profit of MYR80m (+6% YoY) was in line, at 46% of our full-year forecast.
• The results however met just 42% of consensus FY12 estimates. We expect 2H to be stronger, particularly owing to new rental income from Paradigm which was opened in May 2012.
• We maintain our earnings forecasts and BUY call with an unchanged SOP-based target price of MYR3.15 (15x FY12 earnings plus a 20sen increment from the KLIA2 IC concession).

Click here for full report

Source: Maybank Research - 16 August 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).

Click here for full report

Source: Maybank Research - 13 July 2012

WCT: Maintain Buy - Clinches Second Contract from Vale

Maintain Buy. WCT's second win from Vale has lifted its outstanding construction order book to MYR2.48b (+3%). This is positive for earnings visibility, but we maintain our forecasts which have imputed job win expectations. WCT remains a Buy with an unchanged MYR3.15 SOP-based target price (15x 2012 earnings plus a 20sen increment from the KLIA2 IC concession).

Click here for full report

Source: Maybank Research - 8 June 2012

WCT: Maintain Buy - Delivery on Track

No surprises. 1Q12 net profit of MYR40m (+7% YoY, -17% QoQ) is 23% of our and 22% of consensus’ full-year forecast. There is no change to our forecasts for a 6% growth in net profit this year, although there is a possibility that 2012 profits may be stronger due to revaluation gains on Paradigm. We reiterate our BUY call on the stock with an unchanged MYR3.15 SOP-based target price (15x 2012 earnings plus a 20sen increment from the KLIA2 IC concession).

Click here for full report

Source: Maybank Research - 23 May 2012

WCT: Maintain Buy - On Track For Growth

Maintain BUY. 1Q12 results, due on 22 May, should not disappoint. We maintain our forecast of a 6% growth in net profit this year, although there is a possibility that 2012 profits may positively surprise due to revaluation gains. Strong property sales YTD and continuous job win momentum in the next few months would provide the growth impetus to 2013 earnings. We reiterate our BUY call on the stock with an unchanged MYR3.15 SOP-based target price (15x 2012 earnings plus a 20sen increment from the KLIA2 IC concession).

Click here for full report

 Source: Maybank Research - 16 May 2012

WCT - Buys land in OUG Briefing

WCT; Buy; RM2.61
Price Target: RM3.75; WCT MK

WCT has entered into a sale and purchase agreement to acquire 3 parcels of land spanning 23 ha or 56.8 acres in Overseas Union Garden, KL via the entire equity interest in Timor Barat Properties. The shareholders of Timor Barat are Eng Lian Entereprise, Shen & Sons and AMC.

The land is situated along Taman Yarl and will be a mixed development. The acquisition price translates into RM180 psf based on a purchase price of RM450m. The conversion premium of RM15 psf which is pending will be borne by the vendors. We think this is fair for a prime piece of land in a matured neighbourhood. Timor Barat has also applied for a contiguous piece of land in the area and if approved will be acquired by WCT for RM150 psf (freehold) and RM135 psf (leasehold).

The acquisition will increase WCT’s total outstanding land bank by 6% to 1,037.8 acres. There was no guidance given for GDV but assuming a plot ratio of 2x, ASP of RM500 psf and land efficiency of 70%, potential GDV is RM1.7bn.

WCT will be launching RM1bn worth of sales in FY12F (target RM700m). This is after a strong FY11 with RM457m sales (vs RM220m in FY12F). We remain confident WCT will achieve this given exposure to the resilient mid-end segment in matured locations such as Bandar Parklands and Klang (RM650m sales in FY12F) and 1 Medini (RM360m). 1 Medini is off to a good start with 80% take up of the RM150m launch from Phase 1.

We maintain our BUY rating and SOP-derived TP of RM3.70.

Source: HwangDBS Research 15 March 2012

WCT: Maintain Buy - Sizeable land banking in Klang Valley

Positive addition. WCT's proposed acquisition of a company holding a 57-acre land in Old Klang Road, KL will enhance its total land bank by 6%. However, as the land is located at the highly matured part of the Klang Valley, the development value is huge, projected at RM4b. This would lift the total outstanding GDV for its Malaysian projects by 70% to RM9.7b. We are positive on the development achieving good demand. Earnings contributions nonetheless are expected only from 2014. We retain our Buy call on WCT with an unchanged RM3.15 target price.

Maybank Research 15 March 2012

Click here for full report

WCT (BUY) - 4Q Briefing: Fundamentals still intact

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.

 Source: HLIB Research 27 Feb 2012

WCT - Making a stronger comeback

WCT; Buy; RM2.69
Price Target: RM3.75 (Prev: RM3.70); WCT MK

Construction division making a comeback. Raising earnings to reflect strong property pipeline. Buy, TP nudged up to RM3.75.

Source: HwangDBS Research 27 Feb 2012

WCT: Maintain Buy - Still upbeat; maintain Buy

Expect a good year. There were no major updates that were new to us from last Friday’s analyst briefing, to add to our update note of 17 Feb. We remain positive on a stronger construction order book by this year-end, with job wins to gain momentum beyond the RM632m secured year to date. Meanwhile, 2012 earnings will be underpinned by record property sales in 2011 and sizeable launches this year. We retain our earnings forecasts and our RM3.15 SOP-based TP (15x 2012 earnings plus 20sen increment from the KLIA2 IC concession).

Maybank Research 27 Feb 2012

Click here for full report

WCT (BUY) - 4Q meets consensus targets

Reported FY11PATAMI grew by 8% to RM162.4m (20.2 sen/share), beating ours and consensus’ numbers slightly by 2.5% and 1.7% respectively. Net dividend of 3.75 sen/share declared, bringing full year payout to 7.5 sen/share.

After a slow 3Q, WCT’s 4Q earnings rebounded led by a strong pick up in construction activities. However, the property division’s earnings plunged.

Maintain BUY with TP of RM2.98. Our TP is subject to revision after the analyst briefing later.

Source: HLB Research 24 Feb 2012

WCT - Construction back on track

WCT; Buy; RM2.69
Price Target: RM3.70; WCT MK

4Q11 was in line, driven by construction. Strong contractors will benefit from spillover contracts. Maintain Buy, SOP-derived TP of RM3.70.

Source: HwangDBS Research 24 Feb 2012

WCT: Maintain Buy - Record profits

A positive surprise. WCT's 2011 net profit of RM162m (+8% YoY) came in 5% above our estimates, in the absence of forex losses in the final quarter. We tweak our 2012 net profit forecast up by 2% after updating our model. 2012 earnings will be underpin by record property sales in 2011. RM632m in construction job wins year-to-date is a also good start. We retain our SOP-based TP of RM3.15 (15x 2012 earnings plus 20sen increment from the KLIA2 IC concession). Maintain Buy.

Maybank Research - 24 Feb 2012

Click here for full report

WCT - Second win for 2012

WCT; Buy; RM2.65
Price Target: RM3.70; WCT MK

WCT announced its second win for 2012 which is a RM331m contract to construction of mixed commercial development with purpose medical centre at Kota Kinabalu, Sabah. The scope of works comprises the construction and completion of a 9-storey hospital with 200 beds (Block A), a 10- storey Complex with SOHO, Office Suites and 3 levels of retail space (Block B), and 1 level of basement carpark. The completion date is August 2014. This was one of the contracts where WCT had a LOI in hand for some time.

This is a good start to 2012 for WCT being its second win and bringing YTD wins to RM631.5m and current outstanding orderbook to c. RM3bn.

We expect margins to be c.5%, typically of other building jobs but may trend higher given its reputation of being cost competitive. 4Q11 results will be released today followed by an analyst briefing tomorrow where its Managing Director, Peter Taing will make his first appearance. We expect FY11 results to be in line with full year net profit of RM160m (+13% yoy). We maintain our BUY rating and SOP-derived TP of RM3.70.

Source: HwangDBS Research 23 Feb 2012

WCT: Maintain Buy - Second win for the year

Second sizeable win in just two weeks. A RM331m job win has lifted WCT’s outstanding order book by 11% (24% YTD) to RM3.3b. Job win momentum has been very encouraging so far, and we expect more positive newsflow riding on a tender book of at least RM4b. We retain our earnings forecasts, having imputed job win assumptions. WCT remains a Buy with a SOP-based TP of RM3.15 (15x 2012 earnings plus 20sen increment from the KLIA2 IC concession).


Maybank Research 23 Feb 2012

Click here for full report

WCT: Maintain Buy - News flow to turn positive

Maintain Buy with a raised target price. 4Q 2011 results, due on 23 Feb, should at least meet our expectation for a full-year (2011) net profit of RM154m (+9% YoY). We also retain our 2012 forecast for a 9% growth in net profit, supported by strong property sales in 2011. With up to RM5b in its tender book, 2012 could turn out to be a more positive year for WCT in terms of job wins. We lift our SOP-based TP after pegging to stock to a higher 15x PER (+1SD above mean; previously 13x) on expectations of more news flow turning positive.


Maybank Research 17 Feb 2012

Click here for full report

WCT - Bags RM300m MITI contract

WCT; Buy; RM2.58
Price target: RM3.70; WCT MK


WCT announced it has won a RM300.5m contract for the construction of a Ministry of International Trade  & Industry (MITI) building by Putrajaya Management. The scope of works includes the design and build of GBI Gold rating 31-sotrey office, tower, a 2-storey car park and a 3-storey podium with completion in February 2015.

This is an important win for WCT after a long lull in 2011 (order wins of RM187m). This contract win  represents 15% of our FY12F new win assumption of RM2bn. We expect margins to be c.5% but may trend higher given WCT’s reputation of being cost competitive. Total tenderbook now stands at RM5bn, which is still skewed towards the Middle East. We maintain our Buy rating and SOP-derived TP of RM3.70.

Source: HwangDBS Equity Research 9 Feb 2012

WCT: Maintain Buy - Sizeable job win, finally

Good start for the year. A RM300.5m job win has lifted WCT's order book by 11% to RM2.97b, we estimate. This provides some comfort on near-term earnings visibility after very small job wins in the whole of 2011. We maintain our earnings forecasts having imputed job win assumptions for 2012. No change to our sum-of-parts target price pegged to 13x 2012 earnings plus 20sen value increment from KLIA2 retail concession. The stock remains a Buy.


Maybank Research 9 Feb 2012

Click here for full report