CIMB Research keeps Wah Seong an Outperform, ups TP to RM2.35

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.



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HDBSVR: FBM KLCI remains in vulnerable position

KUALA LUMPUR (March 26): Hwang DBS Vickers Research said although Wall Street was up slightly last Friday with its key equity indices rising between 0.2% and 0.3% at the closing bell, it expects limited spillover effects on Bursa Malaysia on Monday.

“Technically speaking, the FBM KLCI remains in a vulnerable position. Facing profit-taking pressures at the moment, the benchmark index could slip below its immediate support level of 1,580 ahead,” it said.

HDBSVR said against the slow market backdrop, following news reports in a business weekly, there could share price actions in: (a) Wah Seong, which is believed to have clinched a pipe-coating contract in Turkmenistan; (b) Deleum, as it may partner Petronas Carigali to form a global patent for a product that could increase oil extraction rates significantly; and (c) D’nonce TECHNOLOGY [], given that one of its subsidiary is in advanced talks to supply halal food products to Kazakhstan.



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Sarawak gas finds to spur new investments

Oil and gas sector
Maintain overweight: Petroliam Nasional Bhd (Petronas) has made two new big gas discoveries offshore Sarawak with estimated recoverable reserves of almost four trillion standard cubic feet (TSCF), an estimated 4% of Malaysia’s current natural gas reserves of 14.8 billion barrels of oil equivalent. The gas finds were at the Kasawari and NC8SW fields in Block SK316 off Sarawak, through exploration wells Kasawari-1 and NC8SW-1. These are the latest wells drilled in Block SK316 which are part of Petronas’ strategy to intensify domestic exploration and prolong its reserves.

The Kasawari-1 well was drilled last November and gas was found in the carbonate reservoirs. The well, drilled to a depth of 3,196m, penetrated about 1,000m of gas column — the longest drilled section of gas column in the country. The well test produced 29 million standard cu ft per day of gas. Preliminary assessments conducted early this month indicate that the gas-in-place for the Kasawari field is over five TSCF, with an estimated recoverable hydrocarbon resource of just over three TSCF — which is one of the largest non-associated gas fields in Malaysia. The NC8SW-1 well, located about 17km south of Kasawari, was drilled last September to a total depth of 3,853m. Gas was found in a 440m column in similar carbonate reservoirs, which are estimated to have recoverable reserves of over 450 billion standard cu ft. Petronas said the NC8SW-1 well discovered potential oil play which requires further evaluation to determine its commercial viability.

While these new gas finds would need another three to five years of analysis and interpretation of seismic data before progressing to the initial development phase, they continue to fuel excitement for oil and gas investments in Sarawak, a major gas producer and exporter with the country’s only liquefied natural gas plant in Bintulu.

Over the next 12 months, we expect Shell’s massive enhanced oil recovery projects in the Baram Delta off Sarawak to gain prominence. These projects involve the Bokor, Bakau, Baram, Baronia, Betty, Fairley Baram, Siwa, Tukau and West Lutong oilfields.

But over the next six months, we expect fresh news from Petronas’ RM15 billion fast-tracked programme to develop gas reserves from a cluster of fields in the North Malay basin, off Peninsular Malaysia. This project is expected to commence production towards the end of 2013. Initial beneficiaries of the North Malay basin development will be fabricators such as Malaysian Marine and Heavy Engineering Holdings Bhd (MMHE), Kencana Petroleum Bhd, SapuraCrest Petroliam Bhd and Dialog Group Bhd. UMW’s oil and gas division, which provides oil country tubular goods and pipelines and rig services, and Wah Seong Corp Bhd for gas compression modules and pipe-coating services, could likewise benefit.

We remain excited about the sector given Petronas’ massive capital expenditure programme of RM300 billion over the next five years involving enhanced oil recovery, marginal fields and cluster/deepwater developments towards maintaining its oil and gas production. We remain “overweight” on the sector and retain our “buy” calls on MMHE, Bumi Armada Bhd, Dialog, SapuraCrest, Kencana Petroleum and Petronas Gas Bhd. — AmResearch, Feb 14


This article appeared in The Edge Financial Daily, February 15, 2012.



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Wah Seong ventures into Congo oil palm industry in US$25m deal

KUALA LUMPUR (Feb 3): WAH SEONG CORPORATION BHD [] is venturing into Congo’s PLANTATION []s sector, with the possibility of planting oil palm trees there after its proposed acquisition of a 51% stake in Atama Resources Incorporated for US$25 million.

Wah Seong said its unit WS Agrco Industries Pte Ltd had signed the agreement to acquire the stake in Atama Resources, which had a 30-year concession from the Republic of Congo to cultivate crops including oil palm on 470,000 ha of federal land.

Wah Seong would acquire the Atama Resources stake from Silvermark Resources Inc and Giant Dragon Group Bhd Ltd.

It said the planning and feasibility studies for the project had been carried out and 180,000hs had been identified as highly suitable for oil palm cultivation.

“Based on this acerage, it is envisaged the complete development will take over 15 years in 10 phases, with planting to commence towards the second quarter of 2012,” it said, adding the finale land area could exceed 180,000 ha.

Wah Seong said the acquisition of the stake was in line with the group’s expansion plan into the oil palm plantations, which would be a source of sustainable and recurring income for the group.

“It is also an upstream integration for WSC, because through its subsidies, it has already been in the business of supplying specialised equipment like boilers, steam turbine and oil room centrifuges to palm oil operators both locally and overseas, including Africa,” it said.



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Promising prospects for Wah Seong

Wah Seong Corp Bhd (Jan 26, RM2.10)

Maintain buy at RM2.10 with target price of RM2.50: Wah Seong’s two pipe coating plants in Louisiana, the US, that cost US$20 million (RM60.8 million) will be ready by 2H12, and it has been pre-qualified for projects in the Gulf of Mexico. These plants will be operated by a joint venture with Insituform Technologies, a subsidiary of US-listed Aegion.

The JV will springboard Wah Seong’s entry into this region by leveraging on its partner’s infrastructure. Brazil could be another massive market for Wah Seong to venture into after it is established in the region.

Despite losing two large contracts to Bredero Shaw in October and November 2011, Australia still offers huge potential for Wah Seong because of the large number of liquified natural gas (LNG) projects there. It is bidding for contracts at Julimar and Ichthys (deepwater portion) that could be worth US$150 million in total.

The Browse LNG project is also in the pipeline after some delays as development cost continues to climb. Wah Seong will be a prime beneficiary of the duopoly pipe coating market for the next two years as Bredero Shaw will have its hands full.

There are about 800km of pipelines that are over 30 years old that need to be replaced soon. And Wah Seong stands to gain pipe coating market share in Malaysia with the 2013 deadline for first production for the RM15 billion North Malay basin project.

Wah Seong is looking for potential mergers and acquisitions to boost the contribution for its non-oil and gas division, which we believe is part of the IPO for its demerger exercise to unlock value for the company. — HwangDBS Vickers Research, Jan 26





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KLCI ends year with a bang, posts YTD gain of 0.78%

KUALA LUMPUR (Dec 30): The FBM KLCI ended a volatile 2011 on a high note, as late buying into banking and key blue chips saw the index reversing its earlier losses to register a 0.78% year-to-date gain.

Regional markets, with the exception of Indonesia and the Philippines ended their year in losses, as lingering concerns over the eurozone debt crisis and heightened worries about the global economy kept investors on the sidelines.

The FBM KLCI jumped 1.6% or 24.04 points to close at 1,530.73. However, this is still ways off its all-time high of 1,597.08 on July 11 this year.

Gainers led losers by 468 to 327, while 336 counters traded unchanged. Volume was 1.33 billion shares valued at RM1.53 billion.

At the regional markets, the Shanghai Composite Index rose 1.19% to 2,199.42, Japan’s Nikkei 225 increased 0.67% to 8,455.35, Hong Kong’s Hang Seng Index added 0.20% to 18,434.39, while Taiwan’s Taiex fell 2.74% to 7,072.08 and Singapore’s Straits Times Index lost 0.99% to 2,646.35.

On Bursa Malaysia, Petronas Dagangan rose 50 sen to RM17.80, BAT 32 sen to RM49.92, JT International added 24 sen to RM7.39, Nestle and Sime Darby added 20 sen each to RM56.20 and RM9.20.

Among the banking stocks, CIMB jumped 28 sen to RM7.44, Maybank 26 sen to RM8.58, Public Bank 20 sen to RM13.38, RHB Capital 18 sen to RM7.48, HLFG 10 sen to RM11.66 and Hong Leong Bank up two sen to RM10.90.

Decliners included AIC that fell 15 sen to RM1.15, DKSH and Wah Seong down nine sen each to RM1.56 and RM2.07, Paragon and Esso eight sen each to 24 sen and RM3.54, while Tan Chong lost seven sen to RM4.08.

The actives included Utopia, Mulpha, KFCH, Wijaya, Coastal, Mah Sing and Sanichi.



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Wah Seong sets up Singapore JV, eyes regional pipe, engineering biz

KUALA LUMPUR (Dec 16): WAH SEONG CORPORATION BHD [] and Insituform BV have set up a joint venture company in Singapore to target pipelines business and also provide onshore corrosion protection services in Southeast Asia and Australia.

Wah Seong said on Friday the new joint venture company WCU Corrosion Technologies Pte. Ltd would seek businesses in lining new and existing pipelines and passageways with corrosion and abrasion resistant polyethylene pipe.

WCU would also look into onshore corrosion protection services, including engineering services, CONSTRUCTION [], installation, inspection, monitoring and maintenance and related product sales.

It said WCU had an initial issued and paid-up of US$1,000 comprising 100 ordinary shares held by WC Singapore (51%) and Insituform BV (49%) respectively.



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O&G-related counters advance, RHB Research upgrades sector to Overweight

KUALA LUMPUR (Dec 12): Stocks in the oil and gas industry advanced on Monday after RHB Research upgraded the sector to Overweight, given its positive long-term view of the industry.

At 9.35am, Petronas Gas rose 26 sen to RM14.10, MMHE eight sen to RM5.53, Petronas Chemicals seven sen to RM6.07, Kencana three sen to RM2.79, Wah Seong Corp one sen to RM1.93 and KNM half a sen to 99 sen.

RHB Research in a note Dec 12 said that the excess liquidity flows had resulted in crude oil prices holding up (vs. plunge in the 2008 global financial crisis).

This was despite the persistent global economic uncertainties, it said.

“We revise our average crude oil price assumptions to US$95/bbl for FY12 and US$99.8/bbl for FY13 (from US$80/bbl and US$89/bbl previously) and upgrade our benchmark sector PER to 15x (from 13x).

“We upgrade our call on the sector to Overweight, as we take into account the positive long-term view.

RHB Research said its top picks were Petronas Gas and Dialog, given their long-term fundamentals.

The research house said it was also positive on the the merger of SapuraCrest and Kencana as it would emerge as a formidable non-Petronas oil & gas company.



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Wah Seong riding on Petronas capex

Wah Seong Corp (Dec 7, RM1.98)
Maintain buy with revised target price RM2.50 from RM3.10: Wah Seong is likely to be busy with Malaysian contracts next year, underpinned by Petroliam Nasional Bhd’s (Petronas) record high RM300 billion five-year capital expenditure. We understand Wah Seong has been receiving inquiries for pipe-coating jobs in Malaysia, indicating potentially robust replenishment for the company.

It is likely to be a direct beneficiary of Petronas’ plan to replace ageing facilities as 60% of the national oil company’s major producing oil fields in Malaysia average 26 years old.

Wah Seong is now primed to strengthen its pipe-coating market share in Malaysia, especially with the RM15 billion North Malay basin project (construction of a 200km of pipeline to transfer gas from nine fields to Kerteh, Terengganu) to be rolled out in the near term, given Petronas’ ambitious timeline of first production by 2013.

Bredero Shaw, a subsidiary of Canada-listed ShawCor Ltd, announced end-November that it had received a letter of intent from Mitsui and Co for pipeline coating jobs (US$400 million or RM1.3 billion) for the Ichthys LNG project, subject to a final investment decision by the project anchors, Japan’s Inpex and France’s Total.

This comes after Wah Seong had lost the Wheastone LNG project (US$170 million) on Oct 11 to Bredero Shaw. We are disappointed with this news, but Wah Seong could still benefit from the duopoly market in Malaysia given that Bredero Shaw’s plant in Kuantan, Pahang, is likely to be fully utilised next year for both Australian projects.

We cut FY12 profit by 10% and FY13F by 4%, including adjusting for the lost bids. Our target price is also reduced to RM2.50, pegged to 15 times revised FY12 earnings per share, in line with its six-year mean multiple. We continue to like Wah Seong for its track record and niche expertise in pipe-coating. — Hwang DBS Vickers, Dec 7


This article appeared in The Edge Financial Daily, December 8, 2011.



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Wah Seong price target cut, stock falls

Wah Seong Corp, a Malaysian pipe-coating company, fell to a one-month low in Kuala Lumpur trading after HwangDBS Vickers Research Sdn Bhd cut its price target to RM2.50 after losing potential contracts in Australia.

The stock dropped 1.5 percent to RM1.96 at 9:15 a.m. local time, set for its lowest close since Oct. 3. -- Bloomberg



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Wah Seong loses out to Bredero Shaw on Ichthys job

Oil and gas
Maintain overweight: While Wah Seong Corp Bhd (WSC) has again lost out to Bredero Shaw on the Ichthys pipe-coating project, the short-term disappointment will be compensated for by the potential of more lucrative domestic projects.

We remain optimistic on its order book visibility for pipe-coating projects. WSC remains a “buy” with an unchanged RM3.10 target price, based on 14 times 2012 earnings per share. On a larger perspective, the Ichthys award denotes the growing importance of gas resources — positive for the pipe players. The oil and gas sector remains an “overweight”.

This is Bredero Shaw’s second successful major pipe-coating job win following the recent Wheatstone LNG triumph, which has a contract value of estimated US$170 million or RM542 million (for a 300km job involving 10-inch to 44-inch pipe). Putting things into perspective, this also denotes the growing importance of gas resources as a clean energy and the continuous capital expenditure drive in this segment.

WSC is likely to focus on domestic jobs to offset the recent disappointments. In both instances it lost out to Bredero Shaw. WSC’s loss is a slight disappointment for we had expected WSC to secure at least one of those two projects.

Nevertheless, we remain optimistic on WSC’s prospects of making up for the opportunity loss from the overseas tenders. We foresee strong visibility for WSC to grow its pipe-coating backlog via domestic orders (pipeline replacement and North Malay basin).

WSC’s outstanding order book remains steady at RM1.2 billion as at September this year. We see it as a proxy play to Petroliam Nasional Bhd’s domestic development programmes and worldwide gas production.

Valuations are undemanding, at sub-10 times one-year forward price-earnings ratio, which is one standard deviation below mean of 9.5 times, which we think, underscores its near-term job wins and earnings potential. — Maybank IB Research, Nov 24


This article appeared in The Edge Financial Daily, November 25, 2011.



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RHB Research lowers Wah Seong to Underperform from Market Perform

KUALA LUMPUR (Nov 24): RHB Research Institute has reduced its FY12-13 revenue estimates for Wah Seong Corp Bhd by -10.2% and -10.0% respectively as it factors in lower wins going forward.

“This results in our net earnings estimates falling by 17.1% and 16.7% respectively,” it said on Thursday.

RHB Research said its new fair value estimate is RM1.49 a share based on unchanged 11 times FY12 PER.

“We are cognisant of the potential volume of domestic contracts that will be rolled-out by Petronas within the next five years but the exact timeline and the quantum of these contracts are still uncertain. Downgrade to Underperform,” it said.

The research house said that Bredero-Shaw received a letter of intent from Mitsui & Co for the pipe-coating contract, estimated to be worth US$400 million (RM1.2 billion), on the Ichthys Gas Field Development project.

“We understand that the main reason Wah Seong lost out on this project was that its plant is currently too busy to facilitate the pipe-coating schedule that was required.

“Management is confident that it will still be able replenish its contracts from the domestic pipeline replacement projects ahead. There would likely be minimal competition from Bredero-Shaw which now has its hands full with the two large Australian contracts (Wheatstone and Ichthys) won recently,” it said.



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Wah Seong climbs on Q3 profit surge

Wah Seong Corp, a Malaysian pipe-coating company, rose the most in more than two weeks in Kuala Lumpur trading after third-quarter profit surged 71 percent to RM21.3 million.

The stock climbed 2 percent to RM2.09 at 9:07 a.m. local time, set for its steepest gain since Oct. 31. -- Bloomberg



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Maybank IB Research maintains Buy on Wah Seong Corp with a RM3.10 TP

KUALA LUMPUR (Nov 16): Maybank Investment Bank Research is maintaining its Buy call on Wah Seong Corp with a RM3.10 target price.

It said on Wednesday a weaker 3Q11 net profit (-19% QoQ) was due mainly to an RM11 million forex loss. This aside, 9M11 core net profit was within expectation (72% of our 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 (14 times 2012 EPS),” it said.

It said the 3Q11 core net profit of RM32m (+17 % QoQ) took 9M11 core net profit to RM102 million (+230% YoY), in line with our forecasts. The underlying growth was driven by higher revenue (+18% QoQ) and an expanded EBIT margin (+0.7-ppt QoQ), driven primarily, we reckon, by its pipe-coating division (i.e. Gorgon and domestic jobs).

“We expect 2H performance to mirror 1H with the AP LNG (US$45 million) and Kebabangan (RM80 million to RM90 million) projects sustaining earnings visibility up to 2Q 2012.

Maybank IB Research said although WSC lost out on Wheatstone’s pipe-coating job, it expects domestic jobs (i.e. pipeline replacement & North Malay basin) and potentially Inpex’s Ichthys LNG project (measuring 885km of pipelines) to fill up capacity over the next few years.

“Our 2012-13 forecasts incorporate RM600 million p.a. of pipe-coating revenue, of which outstanding is about RM400 million, we estimate,” it said, adding that outstanding orderbook remains steady at RM1.2 billion as at September 2011.

“We see WSC as a proxy play to Petronas’ domestic development programmes, and worldwide gas, leveraging on Australia’s multiple LNG project sanctions.

“The stock now trades at sub-10 times one-year forward PER which is at one standard deviation below mean of 9.4 times, which we think, underscores its near-term job wins and earnings potential. On the corporate front, there is no new update on the proposed listing of Wasco, which has been deferred since August,” it said.



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Wah Seong rises on strong 3Q earnings

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.



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Stocks to watch: Harvest Court, CIMB, BHIC, Wah Seong, Prestariang

KUALA LUMPUR (Nov 15): HARVEST COURT INDUSTRIES BHD [] could be in focus on Wednesday, Nov 16 when it resumes trading after Bursa Malaysia Securities declared the securities as designated counters until further notice.

This was the sternest warning to speculators who had chased up the stock in recent weeks as the regulator also issued unusual market activity queries to other penny stocks.

Bursa Securities’ decision to designate the securities of Harvest and the warrants due to excessive speculation observed in the trading of both securities and has been taken in the interest of ensuring a fair and orderly market.

In a separate statement, Harvest Court told Bursa Malaysia that its unit will enter into a related party transaction with 1Green Enviro Sdn Bhd for a RM70 million contract to build a pulp and paper plant in Jempol, Negeri Sembilan.

Other stocks to watch are CIMB Group Holdings Bhd, BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC), WAH SEONG CORPORATION BHD [], Prestariang Bhd, Dutch Lady Milk Industries Bhd, OSK HOLDINGS BHD [] and SOUTHERN STEEL BHD [].

CIMB Group’s net profit rose 10.5pct year-on-year to RM1.012 billion in the third quarter ended Sept 30 from RM916 million a year ago. The net profit for the nine months ended Sept 30, 2011 rose 9.6% year-on-year to a record RM2.898 billion.

Its group chief executive Datuk Seri Nazir Razak said the 3Q earnings were underpinned by the continued improvement at its Malaysian consumer banking operations and rebound in treasury and investments.

Wah Seong Corporation Bhd 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.

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.

Boustead Heavy Industries Corporation Bhd posted net loss RM2.43 million for the third quarter ended Sept 30, 2011 compared to net profit RM26.9 million a year earlier, due mainly to cost overruns in certain commercial shipbuilding projects.

Its revenue for the quarter fell to RM150.02 million from RM227.71 million in 2010. Loss per share was 0.98 sen compared to earnings per share 10.83 sen a year ago.

For the nine months ended Sept 30, BHIC’s net profit fell to RM9.04 million from RM58.37 million, on the back of revenue RM387.47 million.

Prestariang Bhd posted net profit of RM10.07 million in the third quarter ended Sept 30, 2011, underpinned by its information and communications TECHNOLOGY [] (ICT) training and certification schemes.

Its revenue was RM33.13 million and earnings per share 4.69 sen. It declared an interim single-tier dividend of 4.0 sen per share

Dutch Lady Milk Industries Bhd’s earnings rose 77% to RM23.60 million from RM13.32 million a year ago boosted by lower operating costs, higher sales and favourable sales mix.

It said on Tuesday revenue increased by 9.85% to RM201.71 million from RM183.62 million while earnings per share were 36.87 sen compared with 20.82 sen. It declared a dividend of 35 sen per share.

OSK Holdings Bhd reported a 14.2% decline in net profit to RM28.81 million for the third quarter ended Sept 30, 2011 from RM33.60 million a year ago as it included RM5.63 million allowance for impairment losses on investments.

Its revenue rose 13.1% to RM288.78 million from RM255.35 million and earnings per share were 3.07 sen compared with 3.58 sen.

Southern Steel Bhd posted net profit of RM16.05 million for the first quarter ended Sept 30, 2011 on the back of RM734 million in revenue and expected a satisfactory performance in the current financial year.

Pre-tax profit was RM17.30 million while earnings per share were 3.8 sen and it declared an interim dividend of 5.0 sen per share.



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Wah Seong 3Q net profit surges to RM21.29m

KUALA LUMPUR (Nov 15): WAH SEONG CORPORATION BHD [] 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.

It said on Tuesday, 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.

Reviewing its performance, Wah Seong said its revenue increased for the period under review due to better performance in all its divisions.

On its current year prospects, Wah Seong said the sovereign debt issues affecting Europe and rising risks to US growth outlook had created a climate of uncertainty in the global economy.

“However with the existing order book in hand, the group expects to continue to record satisfactory performance for the financial year ending Dec 31, 2011,” it said.




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