PETALING JAYA: Construction outfit WCT Holdings Bhd
’s maiden contract win in Taiwan may open doors to more projects, especially those overseas.
Analysts were positive on the RM152.7mil highway contract announcement, which saw the company secure its first project for financial year ending Dec 31, 2026 (FY26). They said the latest project announcement remains within their order book replacement assumptions.
Hong Leong Investment Bank (HLIB) Research has maintained a “buy” call on the stock, but revised the target price (TP) to 89 sen from RM1.03 after a revamp of its financial model.
It said the project “is especially crucial” given WCT’s sluggish job flow, as the last major contract announcement was the RM365mil North-South Expressway expansion announced last July.
WCT’s order book now stands at RM2.3bil while as of February 2026, with its tender book amounting to RM11bil.
“We believe potential jobs in the pipeline are the Penang International Airport, Penang light rapid transit and road projects. We view this project win positively as the successful foray into Taiwan could open new doors for WCT in the country’s infrastructure sector, especially amid its relatively muted domestic order book replenishment,” HLIB Research added.
Kenanga Research, which has maintained an “outperform” call on the stock with an unchanged TP of RM1.13, believes the company “is poised for a brighter earnings outlook, on the impending roll-out of various public infrastructure projects”.
It has also maintained annual job win assumptions of RM1.5bil a year for FY26 and FY27.
MBSB Research, which has also maintained a “buy” call and an unchanged TP of 60 sen, said the valuation remains undemanding at 16 times forward price-to-earnings, which remains below most construction peers, with price-to-net asset value of 0.2 times among the lowest.
“The steep discount reflects concerns over earnings consistency, balance sheet strength and monetisation of its asset base. But, any sustained improvement in order book replenishment and execution could support a gradual re-rating going forward.”
It added the project broadens overseas infrastructure exposure despite the contract’s modest size, indicating the company’s ability to secure overseas infrastructure jobs amid a competitive tender landscape.
