RHB Research maintains FV for Wah Seong at RM2.21
RHB Research is maintaining its fair value of RM2.21 for Wah Seong Corp Bhd and is keeping its market perform recommendation.
The research house said on Tuesday, Nov 2 that it believes much of the negative sentiment surrounding the sector has been priced in by investors. Share prices did not experience any significant pull-back during the quarterly results reporting in Aug and in fact some stocks have performed strongly in recent months.
“Two main reasons for this: 1) Sustained crude oil prices above the US$70 per barrel mark; and the 2) Resolution of several global energy issues,” it said.
AmResearch said in the short-term, it believes several stocks to see ample trading interest on the back of positive newsflows.
They are stocks linked to the initiatives planned in the Economic Transformation plan (Dialog); provide brownfield services to the domestic energy market (Dayang/ Kencana); and; Are in the same value chain as the two Petronas listings (Kencana/Petronas Gas) could see ample trading interest on the back of positive newsflows.
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