Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD
Research House: AMMB
KUALA LUMPUR: AmResearch is maintaining its Buy call on Wah Seong Corp Bhd with an unchanged fair value of RM3.40 per share, pegged to FY10F's PE of 18 times at parity to the stock's four-year average.
It said on Thursday, April 15 Wah Seong will provide commercial support and assistance to Pipe Coaters Nigeria (PCN) to secure a three-layer and concrete pipe-coating contracts/projects in Nigeria.
"We are Neutral on this agreement as contribution would be insignificant to the group. We understand that Wah Seong is currently eyeing three low margin contracts worth around US$40 million in Nigeria," it said.
AmResearch said if this Nigerian plant turnarounds on top of political risks moderating in Nigeria, the group could be looking at an equity stake later.
"We maintain our FY10F-FY12F estimates, which project average earnings growth of 8%. Stock currently trades at an attractive CY10F diluted PE of 13 times, above Malaysia's oil & gas sector of 12 times but below its five-year average of 16 times and peak of over 25 times," it said.
Company Name: WAH SEONG CORPORATION BHD
Research House: AMMB
KUALA LUMPUR: AmResearch is maintaining its Buy call on Wah Seong Corp Bhd with an unchanged fair value of RM3.40 per share, pegged to FY10F's PE of 18 times at parity to the stock's four-year average.
It said on Thursday, April 15 Wah Seong will provide commercial support and assistance to Pipe Coaters Nigeria (PCN) to secure a three-layer and concrete pipe-coating contracts/projects in Nigeria.
"We are Neutral on this agreement as contribution would be insignificant to the group. We understand that Wah Seong is currently eyeing three low margin contracts worth around US$40 million in Nigeria," it said.
AmResearch said if this Nigerian plant turnarounds on top of political risks moderating in Nigeria, the group could be looking at an equity stake later.
"We maintain our FY10F-FY12F estimates, which project average earnings growth of 8%. Stock currently trades at an attractive CY10F diluted PE of 13 times, above Malaysia's oil & gas sector of 12 times but below its five-year average of 16 times and peak of over 25 times," it said.
No comments:
Post a Comment