KUALA LUMPUR (March 15) : RHB Research Institute Sdn Bhd has raised its earnings forecast for WCT BHD [] by 11% in the FY12 to FY14 period after factoring in earnings potential from the builder’s recently acquired land in the Taman Yarl enclave here.
In a note on Thursday, RHB said the higher earnings projection assumes WCT registers a RM100 million top line and RM20 million in earnings before interest and taxes from its planned real estate project at Taman Yarl during the period.
“We are positive on the latest development as WCT is acquiring the land at a reasonable price, while the relatively established location of the land means the development can take off in a major way over a relatively short period of time,” RHB said.
The research firm is keeping its Market Perform call for the stock with an unchanged fair value of RM2.33. WCT closed unchanged at RM2.61 on Wednesday.
In a note on Thursday, RHB said the higher earnings projection assumes WCT registers a RM100 million top line and RM20 million in earnings before interest and taxes from its planned real estate project at Taman Yarl during the period.
“We are positive on the latest development as WCT is acquiring the land at a reasonable price, while the relatively established location of the land means the development can take off in a major way over a relatively short period of time,” RHB said.
The research firm is keeping its Market Perform call for the stock with an unchanged fair value of RM2.33. WCT closed unchanged at RM2.61 on Wednesday.
