PublicInvest Research has reaffirmed its “outperform” on Wah Seong Corp with a target price of 94 sen and is currently trading at an attractive level.
It said the new contract secured by Wah Seong has provided the company with long-term earnings visibility.
“Our target price of 94 sen is pegged to eight times price earnings (PE) ratio and FY17 forecast earnings per share 11.7sen.
“The stock is remains attractive at current levels, trading at forward-PE of 6.1 times for FY17 forecast and 5 times for FY18 forecast coupled with this new contract as a growth lever to boost its earnings should see positive reflections in its price levels going forward,” PublicInvest said.
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It said the new contract secured by Wah Seong has provided the company with long-term earnings visibility.
“Our target price of 94 sen is pegged to eight times price earnings (PE) ratio and FY17 forecast earnings per share 11.7sen.
“The stock is remains attractive at current levels, trading at forward-PE of 6.1 times for FY17 forecast and 5 times for FY18 forecast coupled with this new contract as a growth lever to boost its earnings should see positive reflections in its price levels going forward,” PublicInvest said.
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