March 10, 2011

WCT - OSK maintains 'buy' call on WCT

Stock Name: WCT
Company Name: WCT BHD
Research House: OSK

OSK Research has maintained a "buy" call on WCT Bhd and increased the target price to RM3.75 from RM3.66 previously, on the prospect of the company winning RM2 billion new jobs, and RM400 million property launches this year.

OSK in a research statement today said the RM2 billion jobs target in Malaysia and the Middle East, is in line with its assumption.

Among the projects being tendered are the RM1.5 billion light rail transit Package B in Malaysia, two road jobs in the Middle East and a building in Qatar worth RM500 million each, and some projects in Putrajaya and Iskandar Malaysia, it said.

For the property launches, it said the company is expected to achieve a 80 per cent take-up rate from it.

OSK has also raised WCT's Financial Year 2011 and 2012 forecast earnings by 3.2 per cent and 5.5 per cent respectively, as it predicts higher property sales. -- Bernama

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