Maybank: WCT FY13 results may beat forecast

by **Cals** Tue 26 Nov 2013, 05:06

Business & Markets 2013

Written by Jonathan Gan of theedgemalaysia.com

Monday, 25 November 2013 14:43

KUALA LUMPUR (Nov 25): WCT Holdings Bhd’s current financial year results may surpass Maybank Investment Bank Bhd's (Maybank IB) forecast.

In a note today, Maybank IB research head Wong Chew Hann said WCT's progress construction and property billings in the fourth quarter ending December 31, 2013 (4QFY13) are expected to accelerate more than 20% quarter-on-quarter (q-o-q).

This is due to direct-labour sourcing by WCT. "Hence, progress billings in 4QFY13 are expected to accelerate by more than 20% QoQ, and hence FY13 results would potentially be above our forecast," Wong said.

Wong also said WCT is expected to register a one-off pre-tax gain of RM10 million in 4QFY13 from the disposal of its 21.6% stake in Swarna Tollway in Andra Pradesh, India to IJM Corp Bhd.

“(WCT's ) Management also expects another revaluation gain from its investment property assets in 4QFY13. Our earnings forecasts are unchanged for now.” Wong said.

Wong’s note was issued following an analyst briefing by WCT.

Post analyst briefing, she said Maybank IB is more upbeat on WCT.

Wong said WCT's strong construction orderbook replenishment prospects of up to MYR1.5 billion, construction and property development progress billings, and higher than anticipated rental rates at the Gateway@KLIA2 will "provide the earnings upside in FY14".

Maybank IB is maintaining its "buy" call on WCT shares with an unchanged target price of RM3. At 2.32pm, WCT shares rose two sen to RM2.38