WCT Holdings Berhad has re-established its presence in the Middle East construction market after securing a AED479 million (approximately RM529 million) contract in a 50:50 joint venture with Construction General Contracting House Ltd, according to CGS International.
The contract, known as the Yas Living Main Works Package, was awarded for a project owned and developed by Aldar Development LLC.
The development comprises two commercial and residential buildings, each standing 12 levels high, including basement works.
Under the contract, the JV will undertake non-foundational structural works, architectural works, mechanical, electrical and plumbing (MEP) works.
Foundational works, including piling and excavation, will be carried out by other contractors.
WCT’s 50% share translates into an effective contract value of approximately RM265 million.
CGS International said there could be additional packages awarded for the same project in the near future.
Strengthening Construction Order Book
The latest win marks WCT’s second contract secured in FY2026 and brings its year-to-date contract wins to RM418 million.
The award also increases WCT’s outstanding construction order book to RM2.1 billion as at June 2026.
CGS estimates the lump-sum contract could deliver a gross profit margin of around 9% to 10%.
The research house noted that the contract includes a variation clause to account for potential increases in raw material prices arising from ongoing Middle East geopolitical tensions.
WCT has set an order win target of RM2 billion for FY2026, following only one project secured in FY2025 — the RM365 million PLUS road widening project in Johor.
Return to Familiar Market
CGS highlighted that while overseas construction projects typically carry higher execution risks, WCT’s return to the Middle East is supported by its previous experience in the region.
The group has completed multiple projects in the Middle East, with its latest major project being the Lusail development in Qatar, which was handed over in 2021.
Meanwhile, WCT’s JV partner CGCH has more than 30 years of experience in the UAE construction industry.
CGS noted that CGCH describes itself as one of the leading contractors in the UAE with a track record of completing projects without delays.
Large Tender Pipeline Ahead
WCT continues to actively pursue new construction opportunities, with its tender book standing at RM14 billion as at May 2026.
The pipeline consists of approximately RM5 billion in civil and infrastructure projects and RM9 billion in building projects.
Among the major projects WCT is bidding for are the RM3.5 billion Penang Light Rail Transit (LRT) system works, where it was the lowest bidder, as well as other domestic infrastructure projects including the proposed rail bridge linking Penang Island and the mainland.
The group is also targeting the third package of the Penang International Airport expansion project involving the terminal building.
CGS Maintains “Add” Recommendation
CGS International reiterated its “Add” recommendation on WCT with an unchanged target price of RM1.12.
The research house said WCT remains attractively valued at around 0.2 times FY2026 forecast price-to-book value (P/BV), below its historical average since 2015.
CGS expects improvements in WCT’s construction and property businesses to support earnings recovery.
Potential re-rating catalysts include stronger earnings delivery and additional contract wins.
However, key downside risks include weaker-than-expected construction earnings and lower property sales.
