RHBInvest Research Highlights 28th December 2011

Stock Name: WCT
Company Name: WCT BHD

Research House: RHB

Price Call: BUY

Target Price: 2.08

28th December 2011

 

Top Story   Motor Sector ' An Uphill Climb                                                    Underweight Sector Update ''       The more cautious outlook and slowing economy in 2012 will likely see households and businesses alike reassess spending on big-ticket items. ''       We expect total industry volumes (TIV) to remain relatively flat at 607,000 units in 2012 (2011E: 604,000). ''       We see some selective supply constraints of certain models continuing into 1Q12 arising from the flooding in Thailand , with Honda the most severely affected.   Corporate Highlights WCT ' A Second Property Venture In Vietnam                            Market Perform News Update ''       WCT, via a 70:30 JV with a local partner, has obtained the Investment Certificate (IC) from the Vietnamese government to undertake a residential/commercial development on a 11.5-acre land in Binh Hung Commune, Binh Chanh District, HCMC, Vietnam .  ''       This is WCT's second property venture in Vietnam .  We estimate it to boast a GDV of about RM500m. Maintain Market Perform.  Fair value is RM2.08.