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OSK Research maintains Buy on WCT

KUALA LUMPUR: OSK Research is maintaining a Buy on WCT as it is one of the research house's top sector picks as it envisages more positive news for the company.

The research house said on Tuesday, Feb 9 that WCT's 4Q FY09 results will be released on 24 Feb, which it expects to be in line with its forecast.

On Monday, WCT's 50% owned Cebarco–WCT JV had received an award involving Fit-Out works at the Bahrain City Centre (BCC). In the job worth RM467m, WCT will have a 50% share based on its stake in the JV.

Margin guidance for the job stands at 7% (PBT level) and profits will be recognized based on the consolidation method.

"As construction of the BCC (also done by the JV) is nearing completion, we expect works on the Fit-Out portion to accelerate moving forward. The Fit-Out portion is scheduled to be completed by 16 Dec 2010," it said.

OSK Research said as the job win is within its orderbook replenishment assumption of RM1.5bn for FY10, it retains its earnings estimates. Its RM3.30 TP is based on 15 times FY10 earnings.
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