Still, the group won a US$15 million (RM48.15 million) pipe coating deal recently, from ILVA S.p.A, an Italian company, for the PTT Offshore Gas Spur Lines Project off Thailand.
Work will be undertaken at Wasco's coating plant in Kuantan, Pahang, and is expected to commence in the third quarter of 2010.
"While the job is small, its still good news for the company as all oil and gas stocks are typically news (contract news specifically) flow driven. Wah Seong, it would seem, has been pretty dry of contract flow over the past quarter but in actual fact they have been getting small jobs not just for pipe coating but also for their engineering segment.
"To note, Wah Seong typically does not announce smallish jobs on Bursa but it's good to see them at least highlighting some of these small awards through their own web portal to keep investors informed and more importantly, interested.
"In view that the group's expansion plans have seen a setback (Socotherm M&A that fell through), we are lowering our target price on the stock given that expansion will now be a lengthier process (likely up to 24 months) than earlier envisioned.
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