Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD
Research House: CIMB
KUALA LUMPUR: WAH SEONG CORPORATION BHD [] shares rose in early trade on Thursday, April 28 after CIMB Research upgraded the stock to an Outperform from Neutral and raised its target price to RM2.70 from RM2.50 previously.
At 9.30am, Wah Seong gained 12 sen to RM2.27 with 1.82 million shares done.
CIMB Research said in a note April 28 said the company's management yesterday shed more light on Wah Seong's recently-announced JVs with US-based Insituform.
This relationship could allow Wah Seong to venture into the US and set up a deepwater pipe coating plant in the Gulf of Mexico area, it said.
'We also note that pipe coating prospects in Malaysia and Australia have improved. Wah Seong is already bidding for Kebabangan's pipe coating package.
'Imputing potential contributions from the JVs, we raise our EPS forecasts by 7.2% for FY12 and 7.1% for FY13 while keeping our FY11 numbers unchanged,' it said.
CIMB Research raised its up from RM2.50 to RM2.70, still pegged to its target market P/E of 14.5 times.
'We upgrade Wah Seong from Neutral to OUTPERFORM in view of the potential re-rating catalysts of 1) success in new markets, and 2) pipe coating contract awards,' it said.
Company Name: WAH SEONG CORPORATION BHD
Research House: CIMB
KUALA LUMPUR: WAH SEONG CORPORATION BHD [] shares rose in early trade on Thursday, April 28 after CIMB Research upgraded the stock to an Outperform from Neutral and raised its target price to RM2.70 from RM2.50 previously.
At 9.30am, Wah Seong gained 12 sen to RM2.27 with 1.82 million shares done.
CIMB Research said in a note April 28 said the company's management yesterday shed more light on Wah Seong's recently-announced JVs with US-based Insituform.
This relationship could allow Wah Seong to venture into the US and set up a deepwater pipe coating plant in the Gulf of Mexico area, it said.
'We also note that pipe coating prospects in Malaysia and Australia have improved. Wah Seong is already bidding for Kebabangan's pipe coating package.
'Imputing potential contributions from the JVs, we raise our EPS forecasts by 7.2% for FY12 and 7.1% for FY13 while keeping our FY11 numbers unchanged,' it said.
CIMB Research raised its up from RM2.50 to RM2.70, still pegged to its target market P/E of 14.5 times.
'We upgrade Wah Seong from Neutral to OUTPERFORM in view of the potential re-rating catalysts of 1) success in new markets, and 2) pipe coating contract awards,' it said.
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