WCT exceeds FY18 replenishment target with latest job win

KUALA LUMPUR: WCT Holdings Bhd has surpassed its jobs replenishment target of RM2bil for FY18.

"Earnings are kept unchanged however as we believe the impact to earnings should be minimal as the surplus billings are to be recognized over a few years," said PublicInvest Research in its Wednesday report.

WCT announced yesterday that it had accepted a letter of award from Impian Ekspresi Sdn Bhd for a mixed development job at Pavilion Damansara Heights worth about RM1.77bil.

"The scope of works encompass the execution and completion of 9 blocks of office tower and 3 blocks of service apartment
on a podium block comprising retail space, mezzanine floors and works to lower ground floor and basement car park within Pavilion Damansara Heights mixed development."

In July, WCT had announced that it had secured a RM555mil contract from Lendlease Projects (M) Sdn Bhd for a mixed developed at the Tun Razak Exchange Lifestyle Quarter.

According to PublicInvest Research, outstanding orderbook is now estimated in excess of RM7bil.

PublicInvest Research said the Pavilion Damansara Heights job is expected to yield about RM80mil in net profit during the construction period, assuming a 6% profit before tax margin.

The research house maintained its neutral call on the counter with an unchanged target price of RM1.