Wednesday, December 1, 2010

OSK Research: Wah Seong results below consensus

KUALA LUMPUR: OSK Research said Wah Seong Corp Bhd's 9MFY10 results were below consensus and its estimates, making up 39% and 37% of consensus and its FY10 forecasts respectively.

The research house said on Wednesday, Dec 1 the continuously poor performance was mainly due to delay in the commencement of the Gorgon pipe coating project by about two months due to changes in specifications.

th'However, we have reduced the target price for Wah Seong to RM2 (previously RM2.40) based on the existing PER of 14 times on FY11 earnings following our FY11 earnings downgrade. We believe the company is still supported by an orderbook of more than RM1 billion,' it said.


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