WCT Bhd's shares have been trading steadily within the band of RM2.70-RM2.78 for the past two months, with potential to break out of the band to move higher in the months ahead.
Shares of the construction and property development company closed unchanged at RM2.72 yesterday.
Bloomberg's survey of 18 research houses that have updated their ratings on AirAsia put the average 12-month target price at RM3.20 for the counter.
WCT has recently proposed an internal reorganisation plan to separate its construction and property divisions. The purpose is to grow its property business to be as significant as its mainstay construction arm within five years.
For the third quarter ended Sept 30, WCT posted a marginally higher net profit of RM40.3mil, or 4.91 sen per share, against RM39.2mil, or 4.87 sen per share, a year earlier. Revenue for the quarter stood at RM441.7mil.
For the first nine months to Sept 30, WCT's net profit rose to RM119.8mil on revenue of RM1.18bil.
Market dealers are positive on WCT due to a potential strong contract flow and strong property sales.
WCT's current orderbook is valued at RM3.24bil, with more than 50% of the projects located in the Middle East. Its active tender book is valued at RM3.5bil.
Among the projects that WCT has tendered for include a building job for the Ministry of Finance in Putrajaya worth RM300mil and the Media City job worth RM400mil, which involves the redevelopment of the existing Angkasapuri building.
● The comments above do not represent a recommendation to buy or sell.