Company Deemed Good Prospects with RM4bil Order Book and Projects

on 03 November, 2012

DESPITE WCT Bhd's 19% decline in earnings before interest and taxes year-on-year in the first half of financial year 2012, it is a favourable player in the construction sector, with 87.5% of research analysts calling it a “buy”.

With an outstanding order book of about RM4bil, it is not hard to understand why. On the property front, its gross development value (GDV) was also given a lift to about RM12bil with its latest purchase that came as a “positive surprise”, according to an analyst.

Its latest proposed acquisition announced on Aug 23 is a deal between its indirect subsidiary WCT Hartanah Jaya Sdn Bhd and Idaman Usahamas Sdn Bhd, a unit of Malaysia Building Society Bhd. The 12 acres in Tebrau, Johor Baru that comes with an abandoned shopping podium will be bought for a consideration of RM180mil. The freehold land is proposed for mixed development with a GDV of RM900mil.

- by The Star