Kenanga Research said WCT is poised for a better financial performance this year (FY2024).

The research house said this is driven by upcoming public infrastructure projects, including the RM45 billion Mass Rapid Transit (MRT3), Penang International Airport expansion, Pan Borneo Sabah, Subang Airport Regeneration (RM3.7 billion), and various government hospital projects.

“We raise our forecast for WCT’s net profit in FY2024 and FY2025 by 15% and 54% respectively as we lift our FY2024 job win assumption to RM1.5 billion (from RM1 billion) while keeping the FY2025 assumption at RM1.5 billion,” it said.

The research house said the contract has boosted WCT’s year-to-date contract wins to RM750 million.

“This is on track to surpass its FY2024 job win assumption of RM1 billion (versus the company’s guidance for RM2 billion).

“With the latest addition, the group’s outstanding order book now stands at RM3.2 billion,” it said.

Therefore, Kenanga has maintained its ‘outperform’ rating on WCT, raising the target price (TP) for the group’s shares to 88 sen per share from 66 sen previously.

Meanwhile, Hong Leong Investment Bank Bhd (HLIB) has raised its forecast for WCT’s FY2025 and FY2026 net profit by 3.2% and 3.5%, respectively, adjusting for higher contract win assumptions.

The investment bank maintained its ‘buy’ call on the group’s shares, with an upward TP of 95 sen from 62 sen.

This adjustment accounts for the valuation of WCT’s property investments, reflecting improved fundamentals and potential monetisation.

“We think the risk-to-reward remains tilted to the upside due to possible inflection points in contract wins, profitable property division, a stronger contribution from property investment division, and monetisation potential,” HLIB added.

As at 2.40pm, WCT’s share price was up by 4 sen or 5.23% at 80.5 sen, giving the group a market capitalisation of RM1.14 billion.