KUALA LUMPUR (March 26): CIMB Equities Research is maintaining an Outperform on Wah Seong Corporation at a higher target price of RM2.35 from RM2.28.
It said on Monday its order book replenishment was the main talking point at its recent meeting with management.
“Up for grabs is Petronas’s Turkmenistan pipe coating contract for which Wah Seong is believed to be a strong contender. Expect upside to its current order book of RM1.2 billion,” it said.
CIMB Research said its target price rises as it now value the stock at its revised CY13 target market price-to-earnings of 13 times instead of 12.6 times. Wah Seong remains an Outperform due to its bright order book prospects, it said.
It said on Monday its order book replenishment was the main talking point at its recent meeting with management.
“Up for grabs is Petronas’s Turkmenistan pipe coating contract for which Wah Seong is believed to be a strong contender. Expect upside to its current order book of RM1.2 billion,” it said.
CIMB Research said its target price rises as it now value the stock at its revised CY13 target market price-to-earnings of 13 times instead of 12.6 times. Wah Seong remains an Outperform due to its bright order book prospects, it said.
