16 May 2013
WCT Bhd is optimistic about clinching RM1.5 billion worth of new jobs in 2013, with the engineering and construction sectors expected to fare better this year.
WCT deputy MD Goh Chin Liong said the company’s current limelight projects such as gateway@klia2, the office building of the Ministry of International Trade and Industry (MITI), and the widening of the north-south expressway, among others, are good enough to meet its target as well as to keep WCT busy for the next two to three years.
“To date, our total domestic trade stands at RM3 billion and overseas, the latest is about RM2 billion,” Goh said adding that with targeted capital expenditure of up to RM800 million this year, WCT is poised to acquire new land around the Klang Valley and Johor for future development.
Speaking to reporters after WCT’s 32nd AGM, Goh pointed out that by 2016, WCT expects the engineering and construction sector to contribute 45% to its earnings, followed by property developments (30%) and investments (25%).
At the moment the engineering and construction sector contributes some 60% of income to WCT, followed by property development at 30% and investment at 10%.
WCT has grown from its original construction and engineering business over the last 32 years into a notable township and property developer particularly in the Klang Valley, Kota Kinabalu, Sabah, as well as in the Iskandar region, Johor. WCT’s current landbank totals approximately 1,048 acres in Malaysia.
It owns and operates Premiere Hotel in Klang and owns three shopping malls ?Paradigm Mall, the soon-to-be-opened Gateway@klia2 and Bukit Tinggi Shopping Centre of which Paradigm Mall and gateway@klia2 are self-managed.
Goh added that the newly acquired 57 acres of land in OUG, Kuala Lumpur, will be developed into a township in which the construction works are scheduled to kick off next year.
“Most of our property development projects are set to begin next year,” said Goh.
As for the first-quarter of financial year 2013, Goh said WCT recorded a progressive performance from the previous years, however, he declined to comment further as the results are scheduled to be announced next week.
For financial year 2012, WCT posted a net prof it of RM345.7million from a turnover of RM1.56 billion. Meanwhile, CIMB Research has said that WCT’s RM1.9 billion worth of construction projects last year represented a strong recovery from 2011.
It expects the recovery to sustain in the second-half of this year, backed by WCT’s target of RM1.5 billion worth of new jobs.
“Recurring income from property investment is set to expand this year, with an additional amount of between RM10 million and RM20 million per annum from the gateway commercial mall at klia2,” it added.
CIMB Research has upgraded its call on WCT Bhd to ‘Outperform’ with a revised target price of RM3.03 from RM2.55 previously.