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Maybank IB maintains 'buy' on Wah Seong on better earnings prospects


s new contract win, Maybank Investment Bank Research is positive over the group s improving prospects and opportunities ahead.
Valuations are still undemanding (6-8x FY22-23 PER), for the market has yet to fully embrace the strength of the earnings turnaround outlook, especially for its Qatari and Malaysia prospects, which would feature prominently from FY22, it said in a note.
The research house, which has a buy call and target price of RM1.20 on Wah Seong, maintained its earnings estimates on epectation of its orderbook growing to RM2bil by FY21.
Winning the Qatar pipe-coating jobs would be a key catalyst, for they would offer a similar earnings impact to the completed NordStream2 project. ....

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Oil price optimism


Maybank IB said its key buy calls are on these stocks – Dialog Group Bhd, Icon Offshore Bhd, Malaysia Maring and Heavy Engineering Holdings Bhd, Wah Seong Corp Bhd and Yinson Holdings Bhd.
PETALING JAYA: Analysts have become more optimistic on the crude oil price outlook, thus raising their price forecasts on the commodity.
Maybank Investment Bank Research (Maybank IB) in its report said it had raised its crude oil price assumption to US$55-US$60 per barrel for 2021 from US$45-US$50 per barrel before.
“Our revised estimates are generally in line with consensus (EIA & Fitch Solutions: US$53 per barrel). A more promising Covid-19 vaccine development/outlook and the effect of underinvestment kicking in could further elevate optimism in the oil market, ” Maybank IB said. ....

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