Wasco's Results Beat Market Forecasts
Wasco's Results Beat Market Forecasts
The company's 2Q24 revenue grew by 9% quarter-on-quarter and 21% year-on-year, although earnings at the EBIT level declined by 40% quarter-on-quarter due to the timing of contract execution. However, normalised net profit saw a notable improvement, rising by 12% quarter-on-quarter and 67% year-on-year. This was driven by lower minority interests, higher associate earnings, and reduced taxes. The stronger-than-expected performance in the oil and gas division, particularly in pipe-coating margins, contributed significantly to the positive results.Wasco Bhd (Wasco) has reported a strong second quarter for the financial year 2024, with its performance exceeding expectations. The company's core net profit for 2Q24 stood at RM36.5 million, marking a 79% increase quarter-on-quarter and a 168% rise year-on-year. This robust performance brought Wasco's core earnings for the first half of 2024 to RM56.9 million, a 95% increase year-on-year.
Wasco Bhd（Wasco）报告了2024财年第二季度强劲的业绩，超过了预期。该公司2Q24的核心净利润达到RM3650万，环比增长79%，同比增长168%。这一强劲表现使得Wasco在2024上半年的核心收益达到了RM5690万，同比增长95%。
Analysts from several stock broking houses have reacted positively to these results, with calls ranging from OUTPERFORM to BUY and revised target prices between RM1.67 and RM1.86.
几家股票经纪公司的分析师对这些结果表示积极的反应，呼吁买入，并将目标价从RM1.67到RM1.86进行了修正。
Wasco's order book remains strong, standing at RM3.7 billion as of the end of June 2024, reflecting a 15% increase from the previous quarter. The company's tender book has also grown to RM7.2 billion, with new projects amounting to RM1.2 billion secured during the quarter. The group's earnings visibility has strengthened with the rising order backlog, which is now at its second-highest level ever. Despite the rise in contract burn rate, the order book is expected to sustain at a high level due to the robust demand outlook for pipe-coating and engineering works.
Wasco的订单簿仍然强劲，在2024年6月底达到了37亿令吉，较上一季度增长了15%。该公司的招标簿也增长到72亿令吉，其中在本季度获得了12亿令吉的新项目。随着订单积压的增加，集团的收入可见性得到了加强，目前已达到有史以来的第二高水平。尽管合同燃烧率上升，但预计订单簿将保持在较高水平，因为管道涂层和工程作品的需求前景强劲。
The company's 2Q24 revenue grew by 9% quarter-on-quarter and 21% year-on-year, although earnings at the EBIT level declined by 40% quarter-on-quarter due to the timing of contract execution. However, normalised net profit saw a notable improvement, rising by 12% quarter-on-quarter and 67% year-on-year. This was driven by lower minority interests, higher associate earnings, and reduced taxes. The stronger-than-expected performance in the oil and gas division, particularly in pipe-coating margins, contributed significantly to the positive results.
该公司的2Q24营业收入环比增长9%，同比增长21%，尽管EBIT水平的盈利因合同执行的时间而下降40%。然而，经过归一化处理的净利润有显着改善，环比增长12%，同比增长67%。这主要是由于较低的少数股权、较高的联营企业收益和减税。石油和天然气部门的强劲表现，特别是管道涂层利润率的提高，对积极的业绩做出了重要贡献。
Looking ahead, Wasco's outlook remains promising, with key ongoing projects such as Yinson's Agogo FPSO, Schneider's EPC for pre-fabricated buildings, and the East African Crude Oil Pipeline progressing well. The company has guided that it expects to start paying dividends in the second half of 2024, although no payout policy has been established yet. Analysts have adjusted their earnings forecasts upwards for FY24, with an increase in profit margin assumptions for the pipe-coating division.
展望未来，Wasco的前景依然充满希望，像Yinson的Agogo FPSO、Schneider的预制建筑EPC和东非原油管道等重要项目进展顺利。该公司指导称预计将在2024年下半年开始支付股息，尽管尚未制定支付政策。分析师已上调了他们对FY24的盈利预测，提高了管道涂层部门的利润率假设。
Source: Maybank, CGS, Kenanga, RHB
Title: Strong quarter, slightly above our expectations, Higher orderbook, strengthening visibility, Pipe-Coating Work Orders Flowing, Prime Opportunity From Price Dip; U/G To BUY
来源：马来亚银行，中国银河，肯纳加，RHB
标题：强劲季度，略高于我们的预期，订单薄增加，增强了可见性，管道涂覆工作订单不断涌入，价格下跌是与买入的最佳机会；升级至买入
