Wasco (former Wah Seong)

[winston]

not vested

4Q Results

Revenue: +75% RM 795m
Losses: RM 48m
Net Asset: RM 0.75

https://www.bursamalaysia.com/market_in ... id=3330492

[winston]

not vested

Feb 10, 2023

Wah Seong To See Strong Recovery In O&G

Affin Hwang Capital said Wah Seong had seen strong activities pick up in both its pipe
coating and engineering segments driven by improvement in global oil and gas (O&G)
capital spending on the back of higher oil prices.

Wah Seong recently won a RM1.1 billion contract for line pipe thermal insulation services
for the Qatar and East African Crude Oil (EACOP) project and a RM0.6 billion engineering
procurement and construction (EPC) contract to fabricate Yinson's FPSO Agogo topside
module.

"These series of new contract awards have resulted in a healthy outstanding order book
of RM3.2 billion (close to 2017 historical high of RM3.6 billion), providing earnings visibility
until 2024," it said.

Wah Seong also recently expanded its fabrication capacity by 1.5 times with an upgraded
loadout capability by acquiring another Batam yard, allowing it to take on more jobs.

Affin Hwnag said the company aimed to replenish RM2 billion of contracts in 2023 from
its current RM4 billion tender book.

"Wah Seong's key growth in the coming years will surround Africa (EACOP project) and
more Qatar contract potential wins," it said.

Affin Hwang said there was a lack of comparable peers both locally and globally, with
Shawcor (listed on the Toronto Stock Exchange) being the only other pipe coater.

Wah Seong's foreign shareholding is around the 15-17 per cent level.

"Based on Bloomberg consensus, its 2023-2024 profit is projected to grow by 44 per
cent/11 per cent.

"Based on these street 2023 estimates, Wah Seong is trading at a forward 7.6 times price
per earning (PE) multiple, a discount to the local small-mid cap O&G space valuation of
10-12 times," said Affin Hwang, which did not rate the stock.

Source: NST

http://waseong.irplc.com/medianews.htm? ... 022023.pdf

[winston]

not vested

Wah Seong’s MD Chan Cheu Leong to retire in July, be replaced by deputy MD Maccagno

by Chester Tay

Wah Seong, which is 40%-controlled by the Tan family of Tan & Tan Developments and IGB Corp, reported a narrower net loss of RM6.3 million for the financial year ended Dec 31, 2022 (FY2022), down 94% from RM107.48 million in FY2021 thanks to stronger order book.

The group’s revenue grew 88% to RM2.69 billion in FY2022 from RM1.43 billion in FY2021.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/665006

[winston]

not vested

Wah Seong
Solid pipeline of jobs

WSC’s 1Q23 orderbook is now just 5% shy of its all-time high in 1Q17, on the back of sizeable order wins in the past 18 months.

We forecast group net profit to grow by 35% yoy in 2023F, 24% in 2024F and10% in 2025F, following the strong turnaround over 2020-22.

Its 2024F P/E multiple of 6.3x is at a steep 38% discount to its 10-year mean.

We initiate coverage with an Add rating and a target price of RM1.40.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... BFE35C8108

[winston]

not vested

The research house is convinced that Wah Seong will register bumper profits in FY23-24f from the recognition of the RM1.1bil EACOP line pipe thermal insulation job and RM558mil EPC job for Yinson’s Agogo FPSO.

“Also, we highlight that the group will be bidding for 3 major tenders for its energy solutions division and four major tenders for its renewable energy division, which may result in job win announcements in 2H23,” HLIB said.

Source: The Star

[winston]

ESG 2.0: Slightly below average
ESG score of 48 – based on our assessment

Our assessment of Wasco’s overall ESG score, under our proprietary ESG scoring methodology, is 48 (out of 100), making its ESG rating slightly below average, in our view.

We think that while Wasco has decent ESG targets and qualitative parameters, more needs to be done with regards to its emission disclosures.

We maintain our BUY recommendation on Wasco with an unchanged TP of MYR1.55 – based on 12x FY24E PER.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/370518.pdf

[winston]

not vested

Wasco CEO sees earnings growth sustained by RM3.2b order book

By Anis Hazim

Expects the group, whose share price has climbed 47% since the beginning of this year, to deliver profitability in the “next few quarters” with the jobs on hand.

Of the RM3.2 billion order book as at end-March, about RM2.9 billion is from its energy services segment and RM260.7 million from its bioenergy services segment.

Wasco’s net profit for the three months ended March 31, 2024 (1QFY2024) more than doubled to RM57 million from RM21.76 million a year earlier.

Quarterly revenue grew 21% to RM643.94 million, compared to RM531.58 million.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/714253

[winston]

not vested

Wasco expects better profits in coming quarters with robust order book

Wasco Bhd’s net profit for Q1 2024 rose 162% to RM57 million, driven by higher revenue recognition from increased project executions.

Wasco Bhd announced its optimism about delivering better profits and revenue from its pipe coating, engineering, and bioenergy segments in the next few quarters, supported by its robust order book at RM3.2 billion as well as a tender book of RM7.25 billion.

Currently, the revenue contribution for the group’s pipe coating, engineering and bioenergy segments each stands at 40%, 40%, and 20% respectively.

The pipe coating market is projected to grow from US$8.3 billion (RM38.99 billion) in 2021 to US$10.6 billion (RM 49.79 billion) by 2027, with a compound annual growth rate (CAGR) of 6.8%.

Its revenue improved to RM643.94 million, marking a 21.1% year-on-year increase.

https://klse.i3investor.com/web/blog/de ... der_book_K

[winston]

not vested

Oct 24, 2024

ESG 2.0: Improved ESG scoring

Above average ESG score

We revisited Wasco’s ESG disclosures post-release of its FY23 Annual and Corporate Governance Reports and have assigned an ESG score of 63 (out of 100), which makes its ESG scoring above average, an improvement from its last score of 48 for FY22.

We maintain our BUY call on Wasco with an unchanged TP of MYR1.67, pegged to a 12x PER (in-line with the target multiple we ascribe to OGSE players in our coverage) on FY25E EPS.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/412793.pdf

[winston]

not vested

Aug 30, 2024

Higher orderbook, strengthening visibility

Wasco’s 1H24 normalised net profit grew 92% qoq, driven by the run-down of its strong order backlog and turnaround in associates and JV contributions.

Group order backlog resumed its uptrend to RM3.7bn as at end-Jun 24, its second highest level ever, strengthening the group’s earnings visibility.

Reiterate Add, with an unchanged GGM-based TP of RM2.00.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... C134AB9F76