KUALA LUMPUR: RHB Research has maintained its Buy call on WCT with a target price of RM2.65 based on a 14 times CY15E EPS.
In a note on Thursday, the research house said WCT's unit bagged a contract from Boustead Ikano for all the works relating to Contract No WP2014 Main Contract Package for the proposed shopping centre at Jalan Cochrane.
The total accepted fixed price lump sum contract value is RM651.6mil. This new contract is the second major external job secured by the group in 2014. In July, WCTHG secured a RM342mil road contract within the Rapid site in Pengerang.
It said that total external contract wins in YTD2014 is now almost RM1bil, the lower end of management’s target of RM1bil-RM2bil.
"Tender book remains large and WCTHG is poised to secure more external contracts in the following quarters. We continue to believe that its share price has largely discounted low investor expectations on new contract wins," it said.
With the new contract, WCT's outstanding construction order book isestimated at around RM3.3bil – enough to sustain E&C billings for around 2.5 years.
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