KUALA LUMPUR (March 9): Hong Leong IB Research has upgraded WCT Bhd to “Hold” with a higher target price of RM1.57 (from RM1.49) after the company secured a contract worth RM1.2 billion (70% stake) in Qatar for the Lusail Development Project.

In a note today, HLIB Research said WCT’s year-to-date job wins of RM847 million brings orderbook to RM2.8 billion, implying 2.3x cover on FY14 construction revenue.
“Raise FY15-16 earnings by 9-10%.

“Upgrade to Hold. While the contract improves earnings visibility, we are not entirely excited as it merely makes up for pedestal job wins in the past,” it said.

At 2.13pm, WCT fell 1.84% or three sen to RM1.60 with 1.39 million shares done.