Wasco Berhad may deliver stronger earnings in the next few quarters as most of its projects will be entering recognition phase and thus, likely to see higher share price, Malacca Securities said.
In its Technical Focus note today (Nov 8), the research house also said that the group has been trending in the uptrend phase for the past couple of quarters, where the share price has experienced a recent breakout move above RM0.985.
“We expect the buying momentum to return, and share price could target RM1.05 to 1.09, with the long-term target set around RM1.15. Support is located around RM0.96-0.97 and the cut loss is set around RM0.95,” it said.
Malacca Securities said Wasco is also expected to record one-off net gain of RM31.8 million going forward, after the disposal of a freehold plot of land in Klang worth RM40m on Oct 12, to be used for reducing its debt and improving liquidity.
“The group has secured another contract worth RM161.9 million in Africa by Schneider Electric, and it will help to replenish the group’s existing record high order book of almost RM4 billion as at end-June this year,” it added.
