WCT Down 1.5% Despite 4Q Result;Buy On Weakness-OSK

0327 GMT [Dow Jones]
Construction firm WCT (9679.KU) is down 1.5% at MYR2.85 despite reporting a 29% on-year rise in 4Q net profit to MYR41.9 million, says a local brokerage dealer. "The stock is trading in-line with the prevailing market weakness," says the dealer; he tips immediate support at the morning low of MYR2.82. OSK Research says WCT's FY core earnings, after adding back an MYR36 million provision for Bakun, would have been ahead of the house expectations by 27%. We see the Middle East unrest having minimal impact on WCT. "Management is targeting MYR2 billion in new jobs this year and MYR400 million in property launches," says OSK; the house keeps its earnings forecasts for WCT pending details from today's briefing. OSK also maintains its Buy call on WCT with an unchanged MYR3.66 target. "Investors should accumulate on the current weakness as WCT is trading at an attractive 12.7X and 10.7X on FY11-FY12 unrevised earnings," OSK says. (elffie.chew@dowjones.com)