Highlights of the day
We hosted a corporate presentation by WCT on its
business review and outlook, attended by 9 fund managers and analysts. While
year-to-date, WCT has successfully topped up its orderbook with RM1.9bn of new
contracts (vs FY11: RM187m), we think that the buck does not stop here as the
company has spare construction machinery and workforce capacity to take on at
least another RM2.5bn worth of construction jobs, particularly civil and
infrastructure works where the group tends to be very competitive. Reiterate
our BUY call on WCT with sum-of-parts target price of RM3.20.
Net profit for 3QFY12 grew 10% y-o-y to RM100.4m on higher property
sales from the Group’s existing and newly launched projects. Revenue from the
property development segment grew 19% y-o-y to RM592.6m, while EBIT jumped 44%
y-o-y to RM139.7m. The strong improvement in EBIT was due to better margins
following the Group’s success in increasing the selling prices of its products.
We believe the Group is on track in meeting its FY12 property sales target of
RM4bn, as 10M sales (Nov 2011 - Aug 2012) has reached RM3.3bn, making up 83% of
its target and surpassing our estimate of RM3bn sales. Our forecast and
RNAV-based target price of RM3.70, remain unchanged. Maintain Hold.
Other reports
Other Malaysian news
§ Maybank: A
potential buyer of 33% stake in Bank of Ayudhya
§
AirAsia,
MAHB: Working together on new terminal deadline
§ MAHB: KLIA2 to commence with 10 airlines in May 2013
§ Dialog: Group to build RM4bn terminal
§
United Plantations: Building
RM96m oleo-derivatives plant
§
Glenealy: Nod
for buyout
§
IPO: CLIQ
to look outside Asia in 2 years of listing
§
Construction: MoF
to award RM2.6bn MRT jobs
§ Oil
& Gas: Malaysia
Global news
§ US
§ US
§ US: Jobless
claims rise to highest in two months
§ South Korea
§ Indonesia
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