KUALA LUMPUR: Construction giant WCT Holdings Bhd (WCT) has raised its orderbook to an all-time high at RM4.7bil after procuring a RM896.4million contract from MRT Corporation, said Hong Leong Investment Bank (HLIB) Research today (10th November 2016).
The MRT Corporation has granted work package V204 of the MRT2 line to WCT. The job at hand for WCT, involves construction of the viaduct guideway and other associated works connecting Bandar Malaysia South Portal and Kampung Muhibbah. The procurement of this contract is WCT’s second of two contracts awarded to WCT from MRT Corp, following the previous RM133million contract win.
With the contract in the bag, WCT’s job wins year-to-date amounts to RM1.4billion, compared to RM3billion 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.