MBSB Investment Bank Bhd (MBSB Research) maintained a BUY call on WCT Holdings Bhd with an unchanged target price of RM0.60 while Hong Leong Investment Bank Bhd (HLIB) also kept BUY but cut its target price to RM0.89 from RM1.03.
Both research houses turned positive on the group’s latest RM152.7 million Taiwan highway contract win which strengthens its overseas construction pipeline and near-term order book visibility.
According to MBSB Research, WCT Holdings Bhd’s wholly owned Taiwan branch secured the RM152.7 million National Highway No.1 Gangshan interchange project in Kaohsiung involving road, bridge and drainage works over a 4.1 kilometre stretch. The contract is scheduled to start on 1 August 2026 with completion over 42 months, providing earnings visibility through FY30.
The research house said the win lifts WCT’s outstanding order book to RM2.29 billion and supports its FY26E EPS of 4.1 sen based on a two-year mean price earnings multiple of 14 times. It added that earnings contributions should progressively kick in from FY27 onwards as construction ramps up.
HLIB described the project as a maiden infrastructure win in Taiwan that could open further opportunities in the market amid slower domestic replenishment. It noted the contract is structured on a remeasurement basis with an estimated 8% PBT margin and lifted its forecasts to RM73 million, RM95 million and RM99 million for FY26 to FY28.
HLIB said WCT’s order book now stands at about RM2.3 billion while its tenderbook remains strong at RM11 billion with potential jobs including Penang Airport, Penang LRT and road works. It added that execution and sustained replenishment will be key catalysts for re-rating although valuation remains undemanding at around 11 times FY26 earnings and 0.2 times book value.
As of 11.13 am, the stock price was unchanged at RM0.66.
