KUALA LUMPUR: Construction and property development company, WCT Bhd's share price rose one sen to RM2.75 following news that the company had acquired 7.33 hectares (18.12 acres) of land in Medini, Iskandar Johor, worth RM99.4 million.
The counter, which moved between RM2.72 and RM2.75, saw 130,300 shares traded.
The venture marks WCT's third property development project in the Iskandar region and is earmarked for a mixed commercial development with an estimated gross development value of RM1.5 billion.
Kenanga Research said the acquisition is a positive move as WCT will be able to secure the earthworks job for the Tun Razak Exchange and the Refinery and Petrochemicals Integrated Development (RAPID) project in the near term.
"We are positive on this acquisition and believe that it is the right time for WCT to expand its property exposure in the Iskandar area," Kenanga Research said in a note today.
The research house has maintained its "outperform" recommendation on WCT with a higher target price (TP) of RM3.17 against RM2.74 previously.
Hong Leong Investment Bank (HLIB) said earnings from this development are expected to kick in from financial year 2014 onwards.
It also maintained its "buy" call on WCT with an unchanged TP of RM3.31.