Wah Seong

In Wah Seong, its 2Q net profit rose on annual and quarterly terms, boosted by the O&G services provider's pipe coating, and corrosion protection business. Wah Seong's net profit rose 33% to RM29.74 million from RM22.36 million from a year ago although revenue fell 8.3% to RM551.84 million from RM601.71 million.

AmResearch has reiterated its Buy call on Wah Seong with an unchanged fair value of RM2.65 per share, pegged to FY10F's price-to-earnings of 14 times.

"Its first half (1HFY09) results came in within expectations, accounting for 49% of our FY09F net profit of RM112 million and 48% of street estimate of RM116 million.

"The group's order book fell 23% quarter-on-quarter to RM1.05 billion on June 30 as the group did not secure significant contracts during the period. While the group's current order book accounts for a low 0.5 times FY09F oil & gas revenue, we understand that it is likely to secure major projects towards the end of the year," it said.