MBSB Investment Bank Bhd (MBSB Research) maintained its NEUTRAL call on WCT Holdings Bhd with an unchanged target price of RM0.43, saying the group’s acquisition of the remaining 30% stake in Paradigm Petaling Jaya developer Jelas Puri Sdn Bhd is strategically positive but unlikely to provide an immediate earnings boost.
WCT is acquiring the Employees Provident Fund’s stake for RM140 million in cash, with completion expected in early August 2026. MBSB Research said full ownership would give WCT greater control to restructure, streamline or monetise Jelas Puri’s remaining assets.
Jelas Puri owns the integrated Paradigm PJ development, comprising The Ascent office tower, Le Méridien PJ Hotel, The Azure Residences and Sapphire Paradigm.
The research house said the deal could also pave the way for future asset monetisation, particularly as Paradigm Mall Petaling Jaya was injected into Paradigm REIT in June 2025. Full ownership could make future transactions easier while allowing WCT to recycle capital and retain exposure through its REIT units.
However, MBSB Research noted that the RM140 million consideration implies a valuation of RM466.7 million for Jelas Puri, or 2.4 times its reported FY25 net assets of RM191.3 million. The RM82.6 million premium may reflect the underlying value of its hotel assets and Paradigm REIT units as well as the benefit of full control.
The research house said the internally funded acquisition would reduce WCT’s cash balance but should remain manageable. Jelas Puri reported a FY25 net loss of RM7.5 million, limiting the near-term earnings impact.
MBSB Research kept its earnings estimates unchanged and maintained the RM0.43 target price based on 11 times FY27F price-to-earnings.
As of 10.32 am, the stock price rose 2.53% to RM0.405.
