WCT Holdings Berhad (WCTHG) continues its robust performance with significant contract wins and strategic initiatives, according to recent reports from Kenanga Investment Bank (Kenanga), CGS International Stock Broking House (CGS), and MIDF Amanah Investment Bank (MIDF).

WCTHG has clinched an RM428 million contract for infrastructure works at Kwasa Damansara, bolstering its year-to-date wins to RM1.43 billion. This marks a substantial achievement, further solidifying the company's position amidst Malaysia's expanding infrastructure landscape. The latest contract underscores the group's capability to secure high-value projects, contributing to its current outstanding order book of approximately RM6.31 billion across various sectors.

Kenanga has adjusted WCTHG's rating to UNDERPERFORM despite raising its target price (TP) to RM0.95, citing concerns over rich valuations amidst recent stock price appreciation. Conversely, CGS maintains an optimistic ADD rating with a higher TP of RM1.52, highlighting sustained order book growth and the potential benefits from WCTHG's planned REIT exercise.

MIDF maintains a NEUTRAL rating on WCTHG, acknowledging its recent share price surge and valuation concerns. Despite maintaining a cautious stance, MIDF recognises WCTHG's strategic contract wins and prospective projects like the Penang International Airport expansion and data centre initiatives, which could further enhance its growth trajectory.

WCTHG's proposed REIT listing is set to enhance its financial flexibility, leveraging assets such as Paradigm PJ and Aeon Mall to potentially reduce its net gearing ratio of 74.5%. This strategic move is expected to unlock the value of its real estate portfolio and support future growth initiatives, aligning with investor interests in sustainable returns and operational expansion.