Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research says it has spoken to the management of Wah Seong Corp who confirmed that a Bredero-led consortium has beaten Wah Seong to the bid for Socotherm. 'While this news is a surprise, it does not have any impact on our earnings numbers as we did not factor in any contributions from Socotherm,' it said on Wednesday, May 19. CIMB Research said furthermore, Wah Seong has a healthy order book of RM1.42bn and is also vying for RM5.3bn worth of contracts. Management is still keen on M&As and is putting in the groundwork in Africa. 'We continue to apply our target market P/E of 15x to the stock, leading to an unchanged target price of RM3. 'Wah Seong remains an OUTPERFORM, premised on the potential re-rating triggers of 1) order book expansion, and 2) M&As. The share price may react negatively to this news. Investors should take the opportunity to accumulate,' it said.
Company Name: WAH SEONG CORPORATION BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research says it has spoken to the management of Wah Seong Corp who confirmed that a Bredero-led consortium has beaten Wah Seong to the bid for Socotherm. 'While this news is a surprise, it does not have any impact on our earnings numbers as we did not factor in any contributions from Socotherm,' it said on Wednesday, May 19. CIMB Research said furthermore, Wah Seong has a healthy order book of RM1.42bn and is also vying for RM5.3bn worth of contracts. Management is still keen on M&As and is putting in the groundwork in Africa. 'We continue to apply our target market P/E of 15x to the stock, leading to an unchanged target price of RM3. 'Wah Seong remains an OUTPERFORM, premised on the potential re-rating triggers of 1) order book expansion, and 2) M&As. The share price may react negatively to this news. Investors should take the opportunity to accumulate,' it said.
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