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Property News

WCT climbs 27%, trading volume swells to record high

KUALA LUMPUR (June 6): Shares in WCT Holdings Bhd (KL:WCT) climbed to their highest in more than four years on Thursday.
The stock surged 27% or 18 sen to 80.5 sen, the highest level since November 2019. The quantum leap in the share price is one of the biggest single-day gains.
The counter’s trading volume also broke a new record, soaring to 114.6 million shares in the morning session.
At 80.5 sen, WCT’s market value stood at RM1.14 billion.
The counter has jumped 61% since the beginning of this year and surged 91.67% in the past one year.
WCT currently has four “buy” calls, four “holds” recommendations with one “sell” rating from the analysts. Meanwhile, the stock had surpassed its 12-month target price of 61 sen on Monday.
Dominion Nexus Sdn Bhd is the largest shareholder of the property company, holding an 18.15% stake, followed by property tycoon Datuk Desmond Lim Siew Choon with 7.42%, and Amanah Saham Nasional Bhd with 5.82%.
It was not known at press time what could have lifted WCT’s share price, which started climbing from 52.5 sen about two weeks ago on May 24.
Last Wednesday WCT returned to the black after two consecutive quarters of posting losses, thanks to the improved results from its construction, property and property investment.
Net profit for the three months ended March 31, 2024 (1QFY2024) was RM16.14 million versus a net loss of RM7.69 million a year earlier. Revenue for the quarter rose 15.51% year-on-year to RM467.39 million from RM404.65 million. No dividend was declared. The last time it paid a dividend of half a sen per share was in FY2022.
For the full financial year ended Dec 31, 2023 (FY2023), WCT incurred a net loss of RM254.15 million in contrast to a net profit of RM128.68 million in FY2022, as revenue dropped 17.94% to RM1.73 billion from RM2.1 billion.
Prior to 1Q result, the group has entered into a supplemental agreement with Malaysia Airports Holdings Bhd (KL:AIRPORT) or MAHB and the airport’s unit Malaysia Airports (Sepang) Sdn Bhd — which would result in an extension of its concession by 22 years and also paring down its stake in the concessionaire Segi Astana Sdn Bhd from 70% to 53%.
Hong Leong Investment Bank (HLIB), in a note earlier on Thursday, expects the agreement to result in a net gain after tax from re-measurement at around RM184 million for WCT.
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Source: EdgeProp.my

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