Seoul shares break 2,000-point level to 6-mth closing high
EM ASIA FX-Greece hopes lift Asia FX, but intervention caps
Trafigura hedge fund targets $3 bln by year-end
S&P warns Asia policymakers of significant economic volatility
LTAT posts record income of RM862.7m in FY 2011
Kimlun gets RM223.18m MRT contract
Categories
| WCT upgraded to trading buy |
| Written by Surin Murugiah | |||
| Monday, 25 May 2009 10:34 | |||
|
In a research note issued on May 25, it said the positive news could be in the form of two letters of intent valued at RM500 million, a proposed large-scale job worth more than RM1 billion, possible participation in the LCCT and additional contracts for Kota Kinabalu International Airport (KKIA) and New Doha International Airport (NDIA). "In light of this, we think a further re-rating on WCT is likely. Upgrade to trading buy, at a target price of RM2.70," it said. The research house said works on the Abu Dhabi F1 track has accelerated as the entire core structure is completed. Bulk of the remaining works (mainly specialist works) would now be executed by nominated subcontractors, and an official deadline for the job has been set at Aug 31, 2009, in time for the maiden race in November this year. "Management said the value of the entire job has now been raised to AED3.6 billion (about RM3.5 billion) from AED3.3bn to account for additional works (WCT has a 50% share in the job)," it said. OSK Research also said WCT could potentially participate in the new LCCT. It came to understand that the consultants appointed by Malaysian Airports were working on the LCCT design. The job was likely to be awarded via open tender and it reckoned WCT stood a good chance, given its experience with the KLIA and ongoing Kota Kinabalu Airport (KKIA) and New Doha International Airport (NDIA). There is also a strong possibility that the latter two airports could see their contract value increased as additional works may be implemented,it said. On the company's property segment, the research house said WCT had not any new launches in the past three quarters and expected this to be minimal in the rest of FY09. "Holding back on launches is less of a concern given WCT's low holding cost and limited land going forward. We are guided that sales have picked up in the recent months, averaging RM2.5 million per week, up from RM500,000 to RM1 millionin 1Q 2009. Its unrecognised sales stands at RM116 million," it said. OSK Research raised its FY09 earnings forecast by 6.2% following WCT's better-than-expected 1Q FY09 results (up 20% above expectations). The research house that no further changes were being made to its estimates at this juncture. It was also assuming RM1 billion worth of jobs for FY09 and RM1.5 billion for FY10 and FY11. "We think more positive news flows are likely to come WCT's way via the materialising of two letters of intent, the possibility of a more than RM1 billion job, its potential participation in the LCCT and higher contract value for KKIA and NDIA. We think investors will continue to re-rate WCT upwards and value the company based on more bullish parameters," it said.
|
|||
|
|