KUALA LUMPUR: CIMB Equities Research maintains an Outperform recommendation on Wah Seong Corp at RM2.32 with a target price of RM2.96. It said on Wednesday, Feb 17 it expects Wah Seong's FY09 net profit to be within its expectations but 11% above consensus estimate.

"The 4Q09 is likely to be the strongest quarter ever, with an estimated net profit of RM34m (+42% yoy), leading to a record year. This year, investors can look forward to potential new contracts in Australia and Papua New Guinea as well as acquisitions in Africa and Italy," it said.

CIMB Research said pending the release of 4Q09 results on Feb 23, it maintains its forecasts and target price of RM2.96, pegged to an unchanged target market P/E of 15 times. Wah Seong remains an Outperform with the share price triggers being 1) an expanding order book, 2) M&As, and 3) earnings upgrades by the market.