KUALA LUMPUR: WCT Holdings Bhd’s (WCT) recent RM896.4mil contract win from MRT Corporation has raised its orderbook level to a new high at RM4.7bil, said Hong Leong Investment Bank (HLIB) Research said on Thursday.
MRT Corp had awarded the work package V204 of the MRT2 line to WCT. The job scope involves construction of the viaduct guideway and other associated works from Bandar Malaysia South Portal to Kg Muhibbah. This recent contract is WCT’s second contract from MRT Corp, following the previous RM133mil contract win.
With package V204 in the bag, WCT’s job wins year-to-date amounts to RM1.4bil, compared to RM3bil in the financial year of 2015 (FY15).
HLIB Research has decided to leave its forecasts unchanged for the time being.
“While year-to-date job wins of RM1.4bil has exceeded our FY16 target of RM1bil, we leave our forecasts unchanged for now pending updates on the potential new strategic direction of WCT as brought forth by its new major shareholder, Tan Sri Desmond Lim, said the research house in its report.
HLIB maintained its “buy” call on WCT’s shares and also left the target price unaltered at RM2.12.
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