Affin Research maintains Buy on WCT, RM3.56 target price

KUALA LUMPUR (Dec 28): Affin Equities Research is maintaining its Buy
call on WCT BHD [] at RM2.30 with a price target of RM3.56.

WCT
had announced on Tuesday its unit was awarded an investment certificate
to undertake a residential and commercial mixed development on a 46,577
sq m (11.5 acre) site in Ho Chi Minh City, Vietnam.

Affin
Research said on Wednesday since the land area was only 11.5 acres, it
did not believe the project would take 50 years to develop.

'We
continue to believe in the long term potential of the property
development business in Vietnam but with the eurozone debt crisis still
unfolding and global economy expected to slow in 2012, short-term
uncertainties remain,' it said.

The research house said that on
the upside, there was recent good response to Gamuda's Celadon City (Ho
Chi Minh City) and Gamuda City (Hanoi) projects.

'Pending
guidance on project launch date and gross development value, we maintain
our FY11-13 forecasts, target price (at 15 times CY12 EPS) and BUY call
for WCT.

'Recent tender failures and likely inability to secure
RM2 billion of new projects this year are key concern,' Affin Research
pointed out.