Prime Highlights
- WCT secured a RM529 million Abu Dhabi subcontract, with its share valued at 5 million, strengthening its Middle East expansion strategy.
- HLIB Research maintained a “Buy” rating on WCT, citing the contract as a key step in diversifying beyond slower domestic job flows.
Key Facts
- The contract covers the Yas Living Main Works Package, a project developed by Aldar Development in Abu Dhabi.
- Analysts said WCT’s Middle East experience and local joint venture partnership help reduce project execution risks.
Background
WCT Holdings Bhd has secured a subcontract worth RM529 million in Abu Dhabi through a joint venture with a UAE-based contractor, with analysts saying the group’s regional experience should keep execution risks in check.
The contract comes through a 50:50 joint venture between WCT and Construction General Contracting House Ltd, a United Arab Emirates-based firm. The deal covers the Yas Living Main Works Package, a project owned and developed by Aldar Development LLC.
WCT’s share of the contract stands at RM264.5 million.Hong Leong Investment Bank Research welcomed the win, saying it reflects WCT’s push to reduce its dependence on the domestic market and shift greater attention toward building works.
The move comes at a time when local infrastructure job flows remain slow, making overseas contracts increasingly important to the group’s pipeline. HLIB Research acknowledged that geopolitical uncertainties in the region carry execution risks, but said WCT’s track record of operating in the Middle East and its established local joint venture partner provide a solid buffer against those concerns.
The combination of regional familiarity and on-the-ground partnership puts the group in a stronger position to deliver the project.The research house kept its buy call on WCT unchanged, maintaining a target price of 73 sen.
It added that further wins from the group’s RM14 billion tender book could drive a re-rating of the stock, giving investors additional reason to watch how the pipeline develops in the months ahead.
The Abu Dhabi contract adds to WCT’s growing international workbook and signals the group’s intent to carve out a bigger presence in the Middle East construction market.
