KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Maintain Outperform with unchanged SOTP-derived TP of RM1.80.
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| WCT Holdings |
WCT Holdings Berhad, via its joint-venture with KKB Engineering Berhad, secured one of the Pan Borneo packages worth RM1.29bn. This job win, which is the Group’s first in FY16, is expected to take 51 months from now to complete. WCT owns 30% of the JV, with the remaining owned by KKB Engineering Berhad. As such, its net stake of c.RM390m is within our replenishment rate of RM2bn p.a. for the Group. This job win is estimated to raise the Group’s outstanding orderbook to RM4.8bn. ensuring earnings visibly for the next few years. Maintain Outperform with SOP-derived TP of RM1.80.
RM1.29bn Pan Borneo Package. The scope of works, among others includes upgrading of Pan Borneo Highway in Sarawak which involving Phase 1, spanning from Sungai Arip Bridge to Bintulu Airport junction. The works are including piling works, civil works which includes demolition & site clearance, earthworks, geotechnical works, drainage work, roads & pavings, road furniture and other miscellaneous works.
C.RM4.8bn outstanding orderbook. With the new job win, the Group’s outstanding orderbook is estimated at RM4.8bn. To recap, the Group is expected to clinch jobs worth RM2bn in 2016, with RM1.6bn expected locally and the rest from the Middle East. Going forward, other key jobs eyed are RAPID Pengerang civil works (c.RM300m), TRX infrastructure and buildings (c.RM800m), Kwasa Damansara civil and infrastructure works, KL118 infrastructure, Southern Double Track, LRT3 and MRT2 rail works.
Maintain Outperform with unchanged SOTP-derived TP of RM1.80. With the potential value to be unlocked from reorganization, we believe the re-rating catalysts are on the cards. Elsewhere, the arbitration claim of AED1.15bn or c.RM1.3bn would potentially add another RM0.95/share to our SOTP valuations. Earnings are kept unchanged.
Source: PublicInvest Research, 27 July 2016
RM1.29bn Pan Borneo Package. The scope of works, among others includes upgrading of Pan Borneo Highway in Sarawak which involving Phase 1, spanning from Sungai Arip Bridge to Bintulu Airport junction. The works are including piling works, civil works which includes demolition & site clearance, earthworks, geotechnical works, drainage work, roads & pavings, road furniture and other miscellaneous works.
C.RM4.8bn outstanding orderbook. With the new job win, the Group’s outstanding orderbook is estimated at RM4.8bn. To recap, the Group is expected to clinch jobs worth RM2bn in 2016, with RM1.6bn expected locally and the rest from the Middle East. Going forward, other key jobs eyed are RAPID Pengerang civil works (c.RM300m), TRX infrastructure and buildings (c.RM800m), Kwasa Damansara civil and infrastructure works, KL118 infrastructure, Southern Double Track, LRT3 and MRT2 rail works.
Maintain Outperform with unchanged SOTP-derived TP of RM1.80. With the potential value to be unlocked from reorganization, we believe the re-rating catalysts are on the cards. Elsewhere, the arbitration claim of AED1.15bn or c.RM1.3bn would potentially add another RM0.95/share to our SOTP valuations. Earnings are kept unchanged.
Source: PublicInvest Research, 27 July 2016
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