KUALA LUMPUR: AmResearch is upgrading its call on WCT BHD [] (WCT) from Hold to a Buy - with a higher fair value of RM3.95/share as it rolls forward its valuation base to FY11F.
The research house said on Tuesday, Oct 12 that despite the recent run-up in its share price, WCT's FY11F-12F valuations remain undemanding at 11 times to 14times - and trades at a 24%-47% and 30%-45% discount to IJM and Gamuda, respectively.
The stock's foreign shareholding (11%) also lags its two larger peers (more than 30%).
The company last Friday announced that it had secured a RM486 million BOT concession contract for the Integrated Complex at the new low cost carrier terminal (KLIA2) in Sepang under a 70:30 JV with Malaysia Airports Holdings Bhd (MAHB).
'The latest deal could herald the start of a re-acceleration in order flows in coming months - where WCT has maintained its year-end order book target of RM2 billion. We see several project catalysts unfolding in the near-term,' it said.
The research house said on Tuesday, Oct 12 that despite the recent run-up in its share price, WCT's FY11F-12F valuations remain undemanding at 11 times to 14times - and trades at a 24%-47% and 30%-45% discount to IJM and Gamuda, respectively.
The stock's foreign shareholding (11%) also lags its two larger peers (more than 30%).
The company last Friday announced that it had secured a RM486 million BOT concession contract for the Integrated Complex at the new low cost carrier terminal (KLIA2) in Sepang under a 70:30 JV with Malaysia Airports Holdings Bhd (MAHB).
'The latest deal could herald the start of a re-acceleration in order flows in coming months - where WCT has maintained its year-end order book target of RM2 billion. We see several project catalysts unfolding in the near-term,' it said.
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