Hong Leong Investment Bank upgraded Wah Seong Corp Bhd to 'buy' after the oil and gas services firm's associate company, Petra Energy Bhd, secured a risk service contract to develop marginal oilfields off the Malaysian coast. Wah Seong holds a 26.9 percent stake in Petra Energy.
"We are positive on the development despite the stake in Petra Energy being worth only 8 percent of Wah Seong's market cap and little pipe related jobs being expected," the research house said in a note.
Hong Leong increased its target price on Wah Seong shares to 2.10 ringgit from 1.75 ringgit and raised the company's earnings per share forecast by 34 percent to 16 sen for the financial year ending Dec. 31, and 29 percent to 17.8 sen for the 2014 financial year.
The counter was up 1.13 percent to 1.79 ringgit a share, outperforming the broader index's 0.15 percent rise. - Reuters