WCT (9679) : Maybank Research positive on WCT REIT plan
KUALA LUMPUR: Maybank Investment Bank Research is positive on WCT Holdings Bhd’s real estate investment trust (REIT) exercise as it would enable WCT to unlock values on its matured retail malls and its Gateway@KLIA2 mall concession.
WCT intends to REIT its three existing malls, which have an estimated total asset value of RM2bil, in 2015.
Maybank Research said on Wednesday proceeds from the REIT would ease WCT’s financing of its new shopping malls. Also, shareholders could benefit via a distribution of shares in the REIT.
“After reflecting the lower property and construction margins, our financial year ending Dec 31, 2105 and 2016 net profit forecasts are lower by 10% and 8% respectively. Our new sum-of-parts based target price is RM2.20,” it said in its note.
Maybank Research believes the slow property sales and lacklustre construction job wins have been priced in. WCT is tendering for RM4bil worth of jobs and its orderbook would be supported by internal construction works.
The property developer is also re-strategising its future property launches to suit current market demand.
The research house upgrades WCT to a “buy” from “hold” rating previously.
http://www.thestar.com.my
KUALA LUMPUR: Maybank Investment Bank Research is positive on WCT Holdings Bhd’s real estate investment trust (REIT) exercise as it would enable WCT to unlock values on its matured retail malls and its Gateway@KLIA2 mall concession.
WCT intends to REIT its three existing malls, which have an estimated total asset value of RM2bil, in 2015.
Maybank Research said on Wednesday proceeds from the REIT would ease WCT’s financing of its new shopping malls. Also, shareholders could benefit via a distribution of shares in the REIT.
“After reflecting the lower property and construction margins, our financial year ending Dec 31, 2105 and 2016 net profit forecasts are lower by 10% and 8% respectively. Our new sum-of-parts based target price is RM2.20,” it said in its note.
Maybank Research believes the slow property sales and lacklustre construction job wins have been priced in. WCT is tendering for RM4bil worth of jobs and its orderbook would be supported by internal construction works.
The property developer is also re-strategising its future property launches to suit current market demand.
The research house upgrades WCT to a “buy” from “hold” rating previously.
http://www.thestar.com.my
