WCT (9679) : AffinHwang Capital maintains Buy on WCT, lowers target price to RM2.48
KUALA LUMPUR (Nov 25): AffinHang Capital Research has maintained its Buy rating on WCT Holdings Bhd at RM1.91 with a lower target price of RM2.48 (from RM2.65) and said the company’s 9M14 core net profit declined 31% year-on-year due to lower civil engineering and construction (CE&C) margin as well as lower property development billings and margins.
In a note Tuesday, the research house said based on the revised 2015E EPS forecast of 17.7 sen and an unchanged PE target of 14x, the price target for WCT was cut to RM2.48 from RM2.65.
“At current price, Buy is maintained. It remains to be seen if the group can achieve its new property sales target of RM1.2 billion in 2014 but new contract wins is within the target of RM1 billion.
“Key downside risks to our rating include; (i) further delays in the award of jobs in Malaysia and overseas; (ii) sharp spikes in construction costs; and (iii) further govenrment tightening measures cutting property demand,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Nov 25): AffinHang Capital Research has maintained its Buy rating on WCT Holdings Bhd at RM1.91 with a lower target price of RM2.48 (from RM2.65) and said the company’s 9M14 core net profit declined 31% year-on-year due to lower civil engineering and construction (CE&C) margin as well as lower property development billings and margins.
In a note Tuesday, the research house said based on the revised 2015E EPS forecast of 17.7 sen and an unchanged PE target of 14x, the price target for WCT was cut to RM2.48 from RM2.65.
“At current price, Buy is maintained. It remains to be seen if the group can achieve its new property sales target of RM1.2 billion in 2014 but new contract wins is within the target of RM1 billion.
“Key downside risks to our rating include; (i) further delays in the award of jobs in Malaysia and overseas; (ii) sharp spikes in construction costs; and (iii) further govenrment tightening measures cutting property demand,” it said.
http://www.theedgemarkets.com
