Wasco (former Wah Seong)

[winston]

not vested

Wasco could potentially reinstate dividends, says HLIB

By Ishra Kamiso

Wasco could potentially reinstate dividends since its last distribution in 2020.

It said another re-rating catalyst could be the successful value unlocking exercises, such as disposal/spin-off of non-core assets/businesses.

Wasco is poised to benefit from an estimated 196,000 km (kilometre) of new trunk oil and gas pipelines globally, from 2023-2030.

“Wasco’s orderbook stands at RM3.2 billion, alongside a huge tenderbook of RM7.3 billion”.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/715306

[winston]

not vested

Wasco - Prime Opportunity From Price Dip; U/G to BUY

30 Aug 2024

Upgrade to BUY from Neutral, new MYR1.86 TP from MYR1.55, 66% upside.

1H24 core earnings exceeded expectations, driven by stronger margins and a lower effective tax rate.

The 3-month share price decline has made Wasco more appealing – it is now trading at an attractive 6.6x FY25F P/E.

Orderbook growth of 15% QoQ to MYR3.7bn further supports the group’s positive outlook.

Source: RHB

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

[winston]

not vested

5142 WASCO (BUY)
Middle East disruptions

Wasco reported 1Q26 core net profit of RM10.2m (-86% QoQ, -65% YoY), below ours/consensus estimates at only 8.8%/8.4%, due to deferred project execution arising from Middle East-related supply chain disruptions.

Wasco is actively mitigating exposure through operational reallocation, alongside commercial negotiations with clients for cost recovery.

We cut our FY26f/FY27f earnings forecast by -43%/-22% to reflect the weaker-than-expected performance of the Energy Services division, and introduce our FY28f forecast.

Maintain BUY on Wasco with a lower TP of RM1.33 (from RM1.49) as we roll-over our valuation base year to FY27f, pegged to a 9x P/E multiple.

Source: HLIB