Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD
HwangDBS Vickers has maintained a "buy" call on Wah Seong Corp Bhd, with a target price of RM3.10, in view of its strong earnings on the back of a RM1.3 billion order book.
The pipe-coating manufacturer's stock price traded at RM2.05, up eight sen, as at 12.30 pm.
HwangDBS Vickers said that the recent Australia Pacific Liquefied Natural Gas (LNG) contract worth RM137 million and RM85 million Kebabangan contract, will contribute positively to the second half of this year earnings and the 2012 financial year.
"Wah Seong is unlikely to be affected by the prevailing weak market, due to a pick-up in oil and gas in Malaysia and Australia", it said in a research note today, adding, the company's tender book remained healthy at RM5.2 billion.
It also said that Wah Seong Corporation Bhd is in a better shape to weather a downturn now, compared to 2008, given its strong order book to anchor earnings and a firm balance sheet with only a 15 per cent net gearing.
"It is expected to ride on the government's efforts to fast-track gas field exploration to solve the critical gas shortage," Hwang DBS Vickers added. -- Bernama
Company Name: WAH SEONG CORPORATION BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 3.10 |
HwangDBS Vickers has maintained a "buy" call on Wah Seong Corp Bhd, with a target price of RM3.10, in view of its strong earnings on the back of a RM1.3 billion order book.
The pipe-coating manufacturer's stock price traded at RM2.05, up eight sen, as at 12.30 pm.
HwangDBS Vickers said that the recent Australia Pacific Liquefied Natural Gas (LNG) contract worth RM137 million and RM85 million Kebabangan contract, will contribute positively to the second half of this year earnings and the 2012 financial year.
"Wah Seong is unlikely to be affected by the prevailing weak market, due to a pick-up in oil and gas in Malaysia and Australia", it said in a research note today, adding, the company's tender book remained healthy at RM5.2 billion.
It also said that Wah Seong Corporation Bhd is in a better shape to weather a downturn now, compared to 2008, given its strong order book to anchor earnings and a firm balance sheet with only a 15 per cent net gearing.
"It is expected to ride on the government's efforts to fast-track gas field exploration to solve the critical gas shortage," Hwang DBS Vickers added. -- Bernama
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