Accumulate WCT. Downside appears limited and there are good prospects for contract awards. At CY12-13 P/Es of 9-11x, it is among the cheapest construction stocks under our coverage. More land acquisition moves imply upside to RNAV.
Follow the mother when Warrant B is con concerned.
Now read this....
Our target price is still pegged to 30% RNAV discount. We expect a recovery in job flows given the group’s target of at least RM1bn worth of new contracts. There are better prospects for civil and building jobs beyond the MRT. The stock remains a Trading Buy and not an outperform due to political overhang on the sector. Job awards are key catalysts.
During the 1Q results briefing for over 50 analysts and fund managers yesterday, Corp Affairs Manager Kenny Wong focused on order book replenishment prospects. Local contract awards are likely to kick off positive newsflow in mid-12. Management reiterated its target of at least RM1bn new contracts for the rest of the year. Within the next three months, there could be a decision on three contracts which we estimate to be worth RM700m-800m in total. One of the jobs is RM400-500m PLUS Highway widening works.
What You Should Do Accumulate WCT. Downside appears limited and there are good prospects for contract awards. At CY12-13 P/Es of 9-11x, it is among the cheapest construction stocks under our coverage. More land acquisition moves imply upside to RNAV.
Don't miss the show next week. Today at 10.46am big kaki seems to collect at high price of 18 cents with big pinkish lots.....collect the same time of big lots too at 17.5 cents.
So we are sure to see more buying at higher price.
Stay my friends......highest year price is at 76.5 cents, lowest is at 13.5 cents...so what say you?
WCT (WCT MK, Buy, TP: RM3.20) plans to add two more shopping malls to its portfolio to create a steady stream income to the group. WCT's maiden retail project, AEON Bukit Tinggi Shopping Centre, was opened in Klang in 2007 and is currently leased to retailer AEON Co Bhd while its second, the Paradigm Mall, was launched yesterday. ED Choe Kai Keong said WCT's third mall, at KL International Airport 2 (KLIA2) integrated complex, was targeted to be opened by April 2013. "We will be managing the 350,000 sf shopping mall ourselves. Meanwhile, the fourth mall will be part of a 60-acre mixed development in Overseas Union Garden (OUG) with an expected total GDV of RM4bn. We are in the midst of acquiring the land now", he said. (StarBiz)
Comment: According to the management, the OUG mixed development would be 60% residential and 40% commercial, and will be developed progressively over a period of 8 years. The fourth mall to be built in that area will also carry the Paradigm brand name. In addition, WCT plans to build and operate a third Premiere Hotel in that area. The other 2 Premiere hotels are at Bandar Bukit Tinggi 1, Klang and the Paradigm development in Kelana Jaya, Petaling Jaya (currently under construction). As the acquisition of the OUG landbank is subject to shareholder approval at an upcoming EGM to be held sometime later this year, we have not yet factored any earnings contribution from the mall and the rest of the OUG development. If all goes as planned, the first launch at the OUG development is expected to happen in January 2014.
3 big taikoh kakis is buying & buying, so you can't go wrong.....if EPF buy, it's more than enough but now we have OCCB Bank & KWSP buy, what more can you say. 3 big buyers & what more can you ask for.
Friday, 25 May 2012
5:22PM Kumpulan Wang Persaraan (DiPerbadankan) (125,300 Shares Acquired) 12:49PM Oversea-Chinese Banking Corporation Limited (535,500 Shares Acquired)
Thursday, 24 May 2012
5:32PM Employees Provident Fund Board (227,200 Shares Acquired)
Buy with confidence as upside is from $1.15 to $1.53, wow, wow.
So far until now no research houses had given WCT an unfavorably report. TP is $3.75....EPF, OCBC bank, WSP, all are buying & buying. Coming in recently is also the Tabung Haji & with so many funds buying in WCT, you can never go wrong.
Normally if EPF buys you follow & buy & what more with 4 big funds now buying & buying.....so shouldn't you be wise & sensible too?
All indications are too the upside & practically no down slide.
Let's see today how WCT & WCT-WB opens & perfoms today.....should be good I presume. From last Thursday all research houses including CIMB, Maybank,HWANGDBS, OSK, HGL, AMMB, Kenanga & ECM give a thumbs-up for WCB...all give a very good & positive TP of between $3.10 to $3.75. Big fund managers like EPF, WSP, Tabung Haji & OCBC bank are buying in & collecting, so what say you?
The choice is yours as always as I do my homework & do the recommendation....the final decision will always be your own judgment & decision.
Yesterday panic selling of WB at 16.5 cents, down by 2.5 cents even though WCT was only down by 2 cents....so managed to pick up some at 17 cents.
Market bad yesterday but WB was down by 1 cent only. How is it going to perform today? The European crisis is there but as they say " no news is good news ", for now , that is.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
chong
3,074 posts
Posted by chong > 2012-05-25 11:32 | Report Abuse
Anyone interest?
Buy WCT Warrant WB....TP for WCT is $3.10 for trading buy....go for it.
....now WCT is $2.36 WB is 17.5 cents ...expiry date is 20/4/2013, exchange ratio is 1: 1. exchange rate is $2.50; premium 12%
...so get it now.