Decent property sales. The group registered 1HFY12 property sales of RM376m, with unbilled sales at RM563m. This is in line with our expectation. New launches over the next 12 months would likely include its 1Medini project in Iskandar Malaysia, which has an outstanding GDV of approx RM500m, commercial and residential units in Bandar Parklands and Bandar Bukit Tinggi as well as a potential office tower in its Paradigm development. For FY13 and FY14, we are pegging our sales assumption at RM400m p.a. vis-''-vis FY12's RM600m in view of the softening sentiment in real estate market.

KLIA2 Integrated Complex to be ready on time. Construction progress of the proposed KLIA2 Integrated Complex remains largely on track, with works likely to be completed by end of this year. Some 27% of the tenant space of 350k sq ft has already been taken up and management targets to hit 70% tenancy rate by year-end. To address concerns over potential delay in the completion of the main airport terminal, which would then cause delays in the commencement of the complex's commercial operations, management guided that compensation schemes are already in place under the concession agreement WCT signed with Malaysia Airports Holdings. We expect contribution from this complex to start in 2QFY13.

Forecasts revised. We revisited our model to incorporate the RM1.0bn new highway job in Oman. With that, we are bumping up our FY12-FY14 EPS forecasts by 1.4%-10.9%, factoring this new stream of contribution under its construction division.

BUY. Overall, we came away from the meeting feeling largely positive on WCT. We continue to like the company's three-pronged approach to expand its property development, investment and management activities by leveraging on its engineering and construction expertise. Hence, we are maintaining our BUY call with our FV upgraded to RM3.36 based on an unchanged 12x FY13 PE following our earnings revision.

Source: OSK