“Furthermore, we are enthusiastic over positive developments within the group, including the much-anticipated Subang Airport regeneration project,” it said in a research note today.

PIVB said WCT will be partnering with Malaysia Airports Holdings Bhd to revamp the airport at an estimated project value of RM1.5 billion over a three-year period.

“Assuming a 70% stake in the joint venture, this project will add approximately RM1.1 billion to its current order book, making up 70% of our 2023 financial year (FY2023) order book replenishment assumption.

“Considering a high single-digit margin, this project is expected to contribute RM28 million on average to the group’s bottom line in FY2024-FY2026,” it said.

The investment bank also noted that the group is in the midst of negotiations regarding a land sale located in the Klang Valley.

“We estimate that the disposal could fetch as much as RM270 million-RM340 million in market value and could bump up its earnings by RM68 million-RM85 million,” it said.

Meanwhile, PIVB said WCT is also mulling over monetising its mature investment assets as a strategy to pare down its borrowings.

“We believe that the group is already in talks to dispose of its mall, Aeon Bandar Bukit Tinggi, Klang, at a price tag in excess of RM600 million.

“The Paradigm Malls in Selangor and Johor can also be monetised, which we understand, would be likely via outright disposal than the proposed real estate investment trusts mooted a few years ago,” it said adding the total book value from these two assets stood at about RM1.8 billion as at Dec 31, 2022.

At 11.30am, WCT Holding’s shares rose by 0.5 sen to 44 sen with 914,700 shares traded.