The audit will cover areas such as safety, maintenance and reliability levels as well as the availability of the rail line service, including the Kelana Jaya and Ampang light rail transits (LRT) as well as the Kuala Lumpur monorail
KUALA LUMPUR: Shares of property-construction company WCT Holdings Bhd
eked out mild gains and rose to a high of RM.83 on Wednesday after winning the RM840mil light rail transit three (LRT 3) package.
At 10.52am, it was unchanged at RM1.80. There were 1.09 million shares done at prices ranging from RM1.79 to RM1.83.
The FBM KLCI dipped 0.01 of a point to 1,761.13. Turnover was 589.30 million shares valued at RM379.20mil. There were 296 gainers, 291 losers and 286 counters unchanged.
On Tuesday, WCT announced its subsidiary, WCT Bhd, accepted a contract to complete “Package GS03” for the LRT3 project from Bandar Utama to Johan Setia.
The contract, valued at RM840mil is the group’s second LRT3 job and will increase its total job wins to-date to RM1bil.
“No change to our earnings estimates as this is within our job replenishment assumption RM2bil,” it said.
WCT also announced that it will inject its land in the Tun Razak Exchange (TRX) into a JV company for RM200mil.
“The value is lower than what WCT 'paid' back in 2015 however. Pending more clarifications from management on this particular transaction, we maintain our Neutral recommendation with unchanged sum-of-parts derived target price of RM2,” it said.
Public Investment Bank Research said the new LRT contract is expected to be completed within 33 months from now. This contract is within WCT management’s guidance for RM2bil new construction jobs in this financial year.
“With the new job, total new jobs secured so far are totaling c.RM1bn, with outstanding orderbook in excess of RM5bil on our estimates.
“Going forward, its tender book includes station packages of MRT2, Kwasa Damansara, Pan Borneo Sabah and high-rise/integrated building jobs.
“Also, WCT has submitted a bid for the KL-Klang bus rapid transit (BRT) project. We understand that there are five bidders for this build-operate-transfer (BOT) project valued at about RM2bil,” said the research house.
PublicInvest Research said as for the TRX deal, it said WCT's injection of RM200mil will see it holding a 20% stake in the JV company, while CORE (Singapore) will own 65% with the remaining 15% by China Communications Construction Company (M).
The said land price is lower than what WCT paid back in 2015 however. Recall that it “paid” RM223mil for the parcel which it obtained through contract works done in TRX.
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