Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD
Maintain Buy with a RM3.10 target price. We reckon WSC's venture into palm oil operations in Congo is part of the Group's agenda to anchor its non-O&G operations once the O&G business spins off from the Group. While this could provide long-term growth prospects, country and operation risks are the concerns, for little is known of Congo's suitability for oil palm cultivation, its economic strength and legislation stability. That aside, we remain positive on its pipe-coating business. Our TP is based on 14x 2012 EPS.
Maybank Research 8 Feb 2012
Click here for full report
Company Name: WAH SEONG CORPORATION BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 3.10 |
Maintain Buy with a RM3.10 target price. We reckon WSC's venture into palm oil operations in Congo is part of the Group's agenda to anchor its non-O&G operations once the O&G business spins off from the Group. While this could provide long-term growth prospects, country and operation risks are the concerns, for little is known of Congo's suitability for oil palm cultivation, its economic strength and legislation stability. That aside, we remain positive on its pipe-coating business. Our TP is based on 14x 2012 EPS.
Maybank Research 8 Feb 2012
Click here for full report
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