Wah Seong 4QFY11 20120223

FY11 earnings doubled from a low base in FY10, mainly driven by improvements in the O&G segment which recorded almost a 3-fold jump in pre-tax contribution thanks largely to the back-on track Gorgon project which also offset the slightly weaker performances of the other segments. Excluding the one-off impairment of RM19.5m, result was 15% higher than our estimates of RM119m. Quarterly performance continued to weaken despite the higher revenue. Orderbook of RM1.2bn is expected to anchor earnings for FY12. Maintain our forecast but downgrade our call to Trading Buy. Target price maintain at RM2.38 based on PER of 15x on FY12 EPS of 15.9sen.