KUALA LUMPUR (Nov 16): WAH SEONG CORPORATION BHD [] shares advanced in early trade on Wednesday. Nov 16 after its net profit for the third quarter ended Sept 30, 2011 surged to RM21.29 million from RM12.49 million a year earlier, due mainly to a higher contribution from the oil and gas division.
At 9.05am, Wah Seong gained four sen to RM2.09 with 2,000 shares traded.
Its revenue for the quarter rose to RM478.84 million from RM346.76 million in 2010. Earnings per share rose to 2.80 sen from 1.64 sen, while net assets per share was RM1.31.
For the nine months ended Sept 30, Wah Seong’s net profit jumped to RM90.85 million from RM31.21 million in 2010, on the back of revenue RM1.37 billion.
Maybank IB Research said Wah Seong’s weaker 3Q11 net profit (-19% q-o-q) was due mainly to an RM11 million forex loss.
This aside, the research house said the company’s 9M11 core net profit was within expectation (72% of full-year forecasts).
“We maintain our forecasts. Overall, pipe-coating visibility remains strong.
“We see domestic projects dominating new orders over the next few quarters. WSC remains a Buy with a RM3.10 target price (14x 2012 EPS),” it said in a note Nov 16.
At 9.05am, Wah Seong gained four sen to RM2.09 with 2,000 shares traded.
Its revenue for the quarter rose to RM478.84 million from RM346.76 million in 2010. Earnings per share rose to 2.80 sen from 1.64 sen, while net assets per share was RM1.31.
For the nine months ended Sept 30, Wah Seong’s net profit jumped to RM90.85 million from RM31.21 million in 2010, on the back of revenue RM1.37 billion.
Maybank IB Research said Wah Seong’s weaker 3Q11 net profit (-19% q-o-q) was due mainly to an RM11 million forex loss.
This aside, the research house said the company’s 9M11 core net profit was within expectation (72% of full-year forecasts).
“We maintain our forecasts. Overall, pipe-coating visibility remains strong.
“We see domestic projects dominating new orders over the next few quarters. WSC remains a Buy with a RM3.10 target price (14x 2012 EPS),” it said in a note Nov 16.
