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）報告了2024財年第二季度強勁的業績，超過了預期。該公司2Q24的核心淨利潤達到RM3650萬，環比增長79%，同比增長168%。這一強勁表現使得Wasco在2024上半年的核心收益達到了RM5690萬，同比增長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.
幾家股票經紀公司的分析師對這些結果表示積極的反應，呼籲買入，並將目標價從RM1.67到RM1.86進行了修正。
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的訂單簿仍然強勁，在2024年6月底達到了37億令吉，較上一季度增長了15%。該公司的招標簿也增長到72億令吉，其中在本季度獲得了12億令吉的新項目。隨着訂單積壓的增加，集團的收入可見性得到了加強，目前已達到有史以來的第二高水平。儘管合同燃燒率上升，但預計訂單簿將保持在較高水平，因爲管道塗層和工程作品的需求前景強勁。
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.
該公司的2Q24營業收入環比增長9%，同比增長21%，儘管EBIT水平的盈利因合同執行的時間而下降40%。然而，經過歸一化處理的淨利潤有顯着改善，環比增長12%，同比增長67%。這主要是由於較低的少數股權、較高的聯營企業收益和減稅。石油和天然氣部門的強勁表現，特別是管道塗層利潤率的提高，對積極的業績做出了重要貢獻。
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.
展望未來，Wasco的前景依然充滿希望，像Yinson的Agogo FPSO、Schneider的預製建築EPC和東非原油管道等重要項目進展順利。該公司指導稱預計將在2024年下半年開始支付股息，儘管尚未制定支付政策。分析師已上調了他們對FY24的盈利預測，提高了管道塗層部門的利潤率假設。
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
來源：馬來亞銀行，中國銀河，肯納加，RHB
標題：強勁季度，略高於我們的預期，訂單薄增加，增強了可見性，管道塗覆工作訂單不斷湧入，價格下跌是與買入的最佳機會；升級至買入
譯文內容由第三人軟體翻譯。