Now only ask to buy WCT???

WCT shares surge on RM1b Oman job, outlook optimism
Business & Markets 2012
Written by Ho Wah Foon of theedgemalaysia.com   
Friday, 17 August 2012 11:42

KUALA LUMPUR (Aug 17) : Shares of CONSTRUCTION [] group WCT BHD [] rose in morning trade following news that it had won a RM1 billion highway job in Oman and optimism that the company will perform better in the second half of the year.
At 11.17 am, WCT rose 10 sen or 4% to RM2.59 per share after trading at a high of RM2.64 in early trade on 1.52 million shares.
CIMB Research, in a major analysis on WCT Friday, estimated that this project would bring in RM21.1 million in net profit over the next three years for the construction company.
“The new highway job in Oman drives our EPS and target price upgrades. Potential awards should underpin newsflow in second half (2H12) and anchor our Trading Buy stance…Securing this project and other job wins are catalysts. WCT remains one of our top sector picks,” said Sharizan Rosely, analyst at CIMB, in his report.
He said after attending a briefing for analysts yesterday, CIMB believes that job-win momentum will be sustained for the rest of the year, given that the company is also bidding for local jobs.
“We advise investors to snap up the stock as it is ripe for a rerating,” Sharizan commented in his report. Currently, CIMB has a “trading buy” call on WCT, with target price of RM3.15 per share.
Locally, WCT is vying for one package worth RM700 million for Petronas’s Rapid project in Johor and a hospital privatisation job of RM800-900 million in Sabah. It is also bidding for MRT station package 3 (S3) which covers The Curve-Taman Tun-Section 17.
“We sensed that the management is now more optimistic about landing contracts. We think that the momentum of awards will be sustained and this should improve sentiment on the stock,” Sharizan wrote, adding he sses upside to WCT’s RM3.3bn outstanding order book.
In addition, CIMB expects better earnings from WCT in 2H12 due to anticipated further improvement in property sales and a pick-up in construction earnings from recognition of a Qatar government job and revaluation gains from Paradigm Mall in 4Q12.
WCT recorded a 6% rise in net profit to RM80 million for the first six months of this financial year ended June 30, 2012, on the back of increased revenue of RM738 million.
Meanwhile, WCT also saw a “buy” recommendation with TP of RM3.52 from TA Research, which said yesterday it expects the second half of the year to perform better.
Maybank Investment Banking, in its short note on the Oman job, has maintained its “buy” call on WCT with target price of RM3.15 per share.