KUALA LUMPUR: ECM Libra Investment Research is maintaining its BUY call on Wah Seong, identifying the stock as one of the laggards in the O&G sector at the moment.
'We peg Wah Seong's FY11 EPS to their +1 standard deviation PE of 19 times to derive our target price of RM2.70,' it said on Wednesday, April 27.
The research house said Wah Seong has been quiet on the news flow front so far and it viewed this announcement as a good start.
'Global expansion has always been the group's intention and it is good to see it taking off with a credible partner in tow,' it said.
'In the nearer term, we expect that Wah Seong might be able to replenish their pipe coating order book with jobs they are bidding for in Australia. These include projects like Gladstone, APLNG, Wheatstone and also Ichthys,' it said.
'We peg Wah Seong's FY11 EPS to their +1 standard deviation PE of 19 times to derive our target price of RM2.70,' it said on Wednesday, April 27.
The research house said Wah Seong has been quiet on the news flow front so far and it viewed this announcement as a good start.
'Global expansion has always been the group's intention and it is good to see it taking off with a credible partner in tow,' it said.
'In the nearer term, we expect that Wah Seong might be able to replenish their pipe coating order book with jobs they are bidding for in Australia. These include projects like Gladstone, APLNG, Wheatstone and also Ichthys,' it said.
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