4 days ago
- Business
- New Straits Times
WCT set for stronger quarters with RM2.5bil order book and solid property sales
KUALA LUMPUR: WCT Holdings Bhd (WCT) is expected to deliver better quarters ahead, supported by a healthy RM2.5 billion construction order book, according to Public Investment Bank Bhd (PublicInvest).
The firm added that the company has achieved RM300 million in year-to-date property sales, putting it on track to meet its financial year 2025 (FY25) target of RM1.1 billion.
"Moving forward, WCT's earnings growth will largely depend on its project execution, cost recovery from completed projects and its ability to replenish the construction order book," it said.
PublicInvest said the company fundamentals remain strong, although its core net profit decline of 47.3 per cent year-on-year to RM12 million in the first quarter of financial year 2025 (1QFY25) was largely due to slower activity in its engineering and construction (E&C) division as projects near completion.
Revenue for the quarter rose marginally by 1.0 per cent to RM472.1 million, driven by significant growth in the property development (PD) and property investment and management (PIM) segments.
The firm said the results came in below its own estimates but within market expectations, representing 12.9 per cent and 19.6 per cent of respective full-year forecasts.
"We keep our estimates unchanged, however, anticipating lower interest expenses post the upcoming REIT listing, which is expected to be completed by June, next month.
"The company's fundamentals show improvement, supported by de-gearing initiatives, project executions and order book replenishment," PublicInvest added.
The firm kept its "Outperform" rating on WCT with an unchanged target price of RM1.08 a share, based on 0.4 times the price-to-book value.
