Posted by dknycom > 2012-02-21 21:59 | Report Abuse

WCT: Maintain Buy - News flow to turn positive

Maintain Buy with a raised target price. 4Q 2011 results, due on 23 Feb, should at least meet our expectation for a full-year (2011) net profit of RM154m (+9% YoY). We also retain our 2012 forecast for a 9% growth in net profit, supported by strong property sales in 2011. With up to RM5b in its tender book, 2012 could turn out to be a more positive year for WCT in terms of job wins. We lift our SOP-based TP after pegging to stock to a higher 15x PER (+1SD above mean; previously 13x) on expectations of more news flow