AN analyst with OSK Reseach said Tenaga Nasional Bhd was on the improvement path, driven by a management team that was delivering on GLC reform targets. He said the 12% tariff hike last year and strengthening of the ringgit had lifted TNB earnings and reduced gearing. TNB has also stripped off some of its non-core assets. The analyst said TNB would benefit from the rise in electricity demand – set to grow by 5% this year and 6% in 2008.
NETRESEARCH Asia sees Oriental Interest Bhd (OIB) as an attractive laggard. A broker said any downside to the stock was limited by the company's high dividend yield forecasts of about 6.8% to 7.6% for the next two years. The research house has a ''buy'' call on OIB with a target price of RM1.87. He said the stock was undervalued trading at a low single-digit price-to-earnings multiple of 4.5 times, and at a significant discount of 53% to its financial year 2006 net tangible asset of RM2.96 per share.
ASEAMBANKERS has a “strong buy” call on WCT Engineering Bhd and a target price of RM6.65, citing robust growth prospects on the back of a sizeable order book of RM3.64bil. An analyst with the research house said WCT's net profit could grow by 24% in 2007 and 20% in 2008, spurred by new construction projects under the Ninth Malaysia Plan and the construction boom in the Gulf States. It is also a strong contender to build new Formula One circuits with the next one expected to be built in Abu Dhabi by 2009.