Wah Seong Corp Berhad : Gladstone and Curtis LNG Projects Contract Get Environmental Green Light - 25/10/2010

♦ Coalbed methane (CBM) projects win environmental approvals.
The Upstream online on 22 Oct mentioned that both the Gladstone LNG
and Queensland Curtis LNG had won final environmental approvals. This
clears the way for final investment decisions (FID), expected by the end of
2010. Both projects are purported to be worth around A$30bn
(RM91.7bn).


Wah Seong Corp Berhad : Gladstone and Curtis LNG Projects Contract Get Environmental Green Light - 25/10/2010

RHB Equity 360° - 25 October 2010 (QL, Wah Seong, Hunza; Technical: TSH, LBS)

Top Story : QL – Expansions to start contributing from FY12 onwards Outperform
Visit Note
- QL is in the midst of constructing its 13ha Breeder and 17ha Layer plant in Cianjur district, located
approximately 2 hours from Jakarta. The plant is expected to contribute 12m day old chicks/year by end
FY11 and 1m eggs/day by end FY12.

RHB Equity 360° - 25 October 2010 (QL, Wah Seong, Hunza; Technical: TSH, LBS)

Corporate Highlights... - 09/09/2010

♦ Wah Seong Corp
Visit note : More Earnings Disappointment Likely In 3Q
♦ Tan Chong Motors
News Update : Tie Up With Xi’an Silver Bus Corporation
♦ Market Technical Reading
Daily Trading Strategy : Muted Trading Sentiment Expected…

Corporate Highlights...-09/09/2010

Wah Seong Corporation Berhad : More Earnings Disappointment Likely In 3Q - 09/09/2010

2HFY10 weaker than expected. We recently met up with management and came away with a bleaker outlook for the rest of FY10. Current oil and gas contract flows, especially for fabrication jobs, remain slow even though new development projects appear to be on the table. We thus suspect 3QFY10 earnings will again be weak and potentially similar to 2Qresults.

Wah Seong Corporation Berhad : More Earnings Disappointment Likely In 3Q-09/09/2010

RHB Equity 360° (Wah Seong, Tan Chong; Technical: TMC Life Sciences) - 09/09/2010

Top Story : Wah Seong – More Earnings Disappointment Likely In 3Q Underperform
Visit Note
- We recently met up with management and came away with a bleaker outlook for the rest of FY10. Current oil and gas contract flows, especially for fabrication jobs, remain slow even though new development
projects appear to be on the table. We thus suspect 3QFY10 earnings will again be weak and potentially similar to 2Q results.
- The management had limited visibility in regards to timing of the Australian coal seam gas (CSG) projects awards. However they are slightly positive on their Nigerian tie-up with partner Pipe Coaters Nigeria (PCN) as the company has managed to secure some projects. While near-term contributions from Nigeria are minimal, we are nonetheless positive as it gives Wah Seong access to the West African region.
- We give Wah Seong the benefit of doubt and look to a better FY11. The Gorgon project should set a base for the company’s earnings, while present speculated E&P activities could materialise by 2011 and lead to better contract flows.
- We trim our FY10/FY11/FY12 net profit estimates again, this time by 17.9%/5.1%/3.9% respectively. Our cuts are extensive on FY10, as we expect it to be a very weak year.
- FY10 looks to be a significantly weak year and re-rating catalysts look like they will only emerge in FY11.
Fair value for the stock downgraded to RM1.79/share (from RM1.89/share) based on an unchanged 13x PER. We maintain our Underperform call on the stock

RHB Equity 360°(Wah Seong, Tan Chong; Technical: TMC Life Sciences)-09/09/2010

Wah Seong Corp Berhad : Significantly Weaker - 26/08/2010

♦ Significantly below. 6M10 net profit of RM18.7m accounted for 15.4% and
14.2% of our and consensus full-year estimates. Results were significantly
lower due to the sluggish oil and gas contract awards seen since late FY09
that led to a dearth of contracts for 1H10. Although the company warned
about the softer earnings, we were surprised at the extent of the
deterioration.

Wah Seong Corp Berhad : Significantly Weaker - 26/08/2010

RHB Equity 360° - (KFC, Parkson, Axiata, Gent Plant, Freight, HSL, Fajarbaru, Emas Kiara, IJMC, IJML, IJMP, MCIL, Allianz, MNRB, Lafarge, Wah Seong,..

Visit Note
- KFCH’s original plan was to open 12 outlets in FY2010, although we understand that target is now trimmed to 7 outlets. The reason for the lower target openings is due to the unexpected problems in the renovation of the stores combined with various red tape issues when getting approvals.

RHB Equity 360° - (KFC, Parkson, Axiata, Gent Plant, Freight, HSL, Fajarbaru, Emas Kiara, IJMC, IJML, IJMP,...

Corporate Highlights - 13/08/2010

♦ Wah Seong Corporation
Company Update : Looking To FY11 For Better Numbers

♦ Petra Perdana
Company Update : Order For AHTS Cancelled

Corporate Highlights - 13/08/2010

Wah Seong Corp Berhad : Looking To FY11 For Better Numbers - 13/08/2010

Weak results in store. Softer numbers are expected in the upcoming 2QFY10 results (expected to be on 25 August) as the engineering division continues to suffer sluggish project replenishment while the pipe-coating and pipe-manufacturing divisions were relatively inactive, pending the start-up of the Gorgon project in June 2010.

Wah Seong Corp Berhad : Looking To FY11 For Better Numbers - 13/08/2010

RHB Equity 360° - 13 August 2010 (Wah Seong, Gloves, Genting S’pore, EON Cap, Petra Perdana; Technical: AZRB)

Company Update:
- Softer numbers are expected in the upcoming 2QFY10 results (expected to be on 25 August) mainly caused by the weakness in the engineering division and pipe-coating and pipe-manufacturing divisions. Meaningful earnings recovery only in expected in FY11.

RHB Equity 360° - 13 August 2010 (Wah Seong, Gloves, Genting S’pore, EON Cap, Petra Perdana; Technical: AZRB)

Wah Seong Corp Berhad : Back On Course In Australia?

Revised resources tax in Australia. Australia’s new Prime Minister announced last Friday that the proposed Resources Super-Profits Tax (RSPT) had been revised to a Minerals Resource Rent Tax, and will apply only to the iron ore and coal industries.

Wah Seong Corp Berhad : Back On Course In Australia?

RHB Equity 360° - 5 July 2010 (Construction, Wah Seong, Lafarge; Technical: SP Setia, TNB)

Sector Update
- We are upgrading the construction sector to Overweight as we foresee construction stocks to generally outperform the market in 2H2010, buoyed by news flow, particularly, from: (1) The RM36bn KL MRT project; (2) The RM7bn Ampang and Kelana Jaya LRT line extension project; and (3) Federal land deals.
- While we believe the market is fully aware that certain negative elements are still lingering in the sector, we feel that it is likely to “brave” these negative elements and forge ahead with its move to position itself ahead of the curve, underpinned by the collective “buy-first-on-news” mentality.
- Our top “tactical” pick is Gamuda (Trading Buy, FV = RM3.85) while top “value” pick is Sunway (Outperform, FV = RM2.35).

RHB Equity 360° - 5 July 2010 (Construction, Wah Seong, Lafarge; Technical: SP Setia, TNB)

Corporate Highlights - 4/6/2010

♦ Wah Seong Corporation
Visit Note : Hit A Speed Bump

♦ Axis REIT
News Update : Acquiring Two Industrial Properties For RM134m, Proposes Placement Of 68.8m New Units

♦ Market Technical Reading
Daily Trading Strategy : Sellers To Return Near 1,300...

Corporate Highlights - 4/6/2010

Wah Seong Corp Berhad : Hit A Speed Bump - 4/6/2010

M&As likely to be deferred. While ShawCor’s successful acquisition of Socotherm would further strengthen its near global monopoly of specialist pipe-coating, management highlighted that Wah Seong is in a strong position to acquire other pipe coaters which currently do not have deepwater pipe coating assets and have limited geographical reach. Nevertheless, identifying sizeable pipe-coating assets will take time and we believe any M&A is unlikely in the near term.

Wah Seong Corp Berhad : Hit A Speed Bump - 4/6/2010

RHB Equity 360° - 4 June 2010 (Wah Seong, BAT, Axis REIT; Technical: Unisem)

While ShawCor’s successful acquisition of Socotherm would further strengthen its near global monopoly of specialist pipe-coating, management highlighted that Wah Seong is in a strong position to acquire other pipe coaters which currently do not have deepwater pipe coating assets and have limited geographical reach. Nevertheless, identifying sizeable pipe-coating assets will take time and we believe any M&A is unlikely in the near term.

RHB Equity 360° - 4 June 2010 (Wah Seong, BAT, Axis REIT; Technical: Unisem)

Corporate Highlights... - 01/06/2010

♦ Strategy / Earning Review : Downdraft Of Fear; Longer-term Outlook Still Positive

♦ Benchmarking
Market Update : Anticipating The Mid-Year Review

♦ Banking
Sector Update : Apr ‘10 System Data – Broadly Stable

♦ Sunway Holdings
News Update : Secures RM210m Building Job From SunCity

♦ Maxis
Results / Briefing Note : Delivering On Dividends

♦ Alliance Financial Group
Results Note : Lower-Than-Expected LLP Helps Beat Estimates

Corporate Highlights...-01/06/2010

Wah Seong Corp Berhad : 1Q Earnings Dragged Down By Lower Contribution - 1/6/2010

1QFY12/10 results below expectations. Wah Seong’s 1QFY12/10 core net profit of RM17m was below our expectation and consensus estimates, accounting for 10% and 9% of our full-year forecast and market consensus. The variance was largely due to weaker-than-expected contribution from its engineering division given still-weak demand for topsides fabrications and compressors stemming from the softer market for FPSOs as oil majorscontinue to hold back huge investments in marine assets.

Wah Seong Corp Berhad :1Q Earnings Dragged Down By Lower Contribution - 1/6/2010