KUALA LUMPUR (May 26): Hong Leong IB Research has maintained its “Buy” rating on WCT Holdings Bhd with a target price of RM2.12 and said WCT’s 1QFY16 core earnings of RM32 million (up 117% y-o-y) were within expectations but below consensus.
In a note today, the research house said WCT’s construction division witnessing a healthy recovery in margins.
“Orderbook of RM3.9 billion implies healthy cover ratio of 3.4x.
“Maintain Buy, target price: RM2.12. We expect WCT to witness a reversal of fortunes this year,” it said.
At 9.23am, WCT fell 2.96% or 5 sen to RM1.64 with 174,900 shares done.