Awc Berhad

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$AWC / 7579 (AWC BERHAD)

⭐*AWC (BUY; TP :RM1.41)*⭐
*Opportunities aplenty*

We came away from AWC’s 2QFY25 earnings briefing feeling reassured about the company’s prospects.

🎯 *Strong order wins with plenty of opportunities ahead*

- FY25 YTD order wins stood at a robust RM212.6m, representing 78% of FY24’s total win of RM271m. As of 31st December 2024, the group’s order book remained strong at RM704m, with RM360m from IFM, RM163m from Environment, RM150m from Engineering, and RM66m from Rail.

- Despite this solid order book, tender activities showed no signs of slowing down, with the tender book growing to RM1.3bn.

- Management guided a hit rate of 20% for the said tender book, which is in line with its last year hit rate of c.22%.

💹 *Environment*

- Management continues to see strong growth opportunities in its Steam business, particularly in Malaysia, supported by a strong property market.

- To further grow this market, the group's main initiative is to pitch the automated waste collection system for installation in public healthcare facilities and affordable housing.

- In the Middle East, the company continues to work diligently on potential projects and remains hopeful that some will materialize over the next 6-12 months.

- Overall, for FY25, we expect the Facilities segment to report stronger YoY performance, driven by a higher order book (FY23 end order book: RM132m vs FY24’s RM165m) and the potential for major contract wins in the Middle East market.

🚄 *Rail*

- The strong revenue performance in the Rail segment (+165.1% QoQ; +192.0% YoY) is attributed to the accelerated delivery aimed at clearing the backlog from last year.

- The segment currently has an order book of RM66m to fulfill, and management is optimistic that the strong performance seen in 2Q25 will be sustained, provided there are no further logistics hiccups.

- Additionally, the tender book for this segment has seen a significant increase, rising to RM300m as of 31 Dec 2024, compared to the usual level of around RM70m.

🏢 *IFM’s performance to be cushioned by newer jobs*

- With three newly secured IFM jobs set to fully contribute in the upcoming quarters, they are expected to help offset the additional RM1.7m in annual costs arising from the minimum wage hike revision effective February 2025.

- Overall, the group remains focused on managing the cost pressures faced by its older IFM projects *and is hopeful to stay in the black for the coming two quarters.*

🛠️ *Engineering*

- The tender book for this segment remains strong at RM500m, with approximately RM100m derived from DC projects, while the remainder is split between the residential and commercial property markets in Malaysia and Singapore.

- With a robust order book of RM150m, we expect the segment’s performance to strengthen in 2HFY25, driven by an increased contribution from DC projects.

- Additionally, management has indicated potential contract wins in the coming months, particularly within the healthcare and DC sectors.

💰 *Forecast.* Unchanged.

⭐ *Maintain BUY with an unchanged TP of RM1.41,* based on 14x CY25 EPS.

- Overall, we believe the stock is poised to enter a new earnings upcycle, led by its Environment and Engineering segments in FY25f-26f, with further contributions from IFM and Rail expected from FY27f onwards.

$AWC / 7579 (AWC BERHAD) AWC Reports 2QFY2025 Financial Results with a Revenue of RM116.8 Million and PBT of RM8.5 Million

For media queries, please contact:
corp.news@bcta.com.my

Sharing from remisier... $AWC / 7579 (AWC BERHAD) @Ryunanda

AWC (Initiation; BUY TP: RM1.41)⭐

We initiate coverage on AWC with a BUY rating at a TP of RM1.41. Anchored by four main pillars, we reckon AWC is entering into a new earnings upcycle. We project AWC’s FY25/26/27 core net profit to grow by 88%/31%/20%, implying a respectable 3-year CAGR of 44.0%.

Key Highlights_

🏠 Environment STREAM, which commands c.90% market share in Malaysia, is well-placed to benefit from the country’s stronger property market outlook and anticipated rise in new launches, as well as Singapore’s robust pipeline of residential, office, and HDB developments. Meanwhile, in the Middle East, the region's booming infrastructure sector presents ample opportunities for AWC to secure additional contracts.

🛠️ Engineering: Similar to its Environment segment, the expected growth in both Malaysia and Singapore property markets are seen to benefit AWC’s Engineering pillar. Separately, with its plumbing segment recently securing a prestigious MNC DC project, AWC is well positioned to ride the DC wave in Malaysia. Based on our estimates, the 4.7GW DC pipeline translates into an opportunity worth RM1.6–2.9bn for the plumbing sector.

🏢 IFM: With the bulk of AWC’s concession and non-concession contracts are set to expire in CY25–26, the renewal of these contracts are seen to significantly drive the profitability of its IFM segment, which has been eroded by cost escalation over the past three years.

🚄 Rail the Rail segment is poised to secure a portion of the upcoming systems contract for Penang LRT, where management expects it to be valued at c.RM400m. Separately, the potential MRT3 and HSR project rollouts offer AWC strong opportunities to tap into in the future.

⭐ Initiate with BUY at a TP of RM1.41 , based on 14x CY25 P/E; this represents 15% discount to the pure-play property sector's 16.5x.

We find this valuation method fair since c.70% of AWC’s profit is driven by the Environmental segment, where contract flows are closely linked to the property space.

Overall, we believe the stock is poised to enter a new earnings upcycle, led by its Environment and Engineering segments in FY25f-26f, with further contributions from IFM and Rail expected from FY27f onwards.

$AWC / 7579 (AWC BERHAD) Reports 1QFY25 Financial Results With A Revenue Of RM 94 Million And PBT Of RM7.7 Million–Orderbook Stands At Above RM 700 Million

Bursa Announcement:
https://cutt.ly/keLWRV7p

For media queries, please contact:
corp.news@bcta.com.my

$AWC / 7579 (AWC BERHAD) Wins Facilities Management And Maintenance Contract In Putrajaya Worth Rm48.6 Million

Bursa Announcement:
https://cutt.ly/ueKtiQt5

For media queries, please contact:
corp.news@bcta.com.my

KUALA LUMPUR: AWC Bhd’s wholly-owned subsidiary, Ambang Wira Facilities Sdn Bhd (AWFSB) has secured a RM9.43mil contract from Melaka’s Public Works Department (JKRM).

$AWC / 7579 (AWC BERHAD) Bags Facilities Management And Maintenance Contract For Immigration Complex In Sungai Melaka Worth RM9.5m

Bursa Announcement:
https://cutt.ly/0eDOaqK2

For media queries, please contact:
corp.news@bcta.com.my

KUALA LUMPUR: AWC Bhd said a tender submitted by its wholly-owned subsidiary Ambang Wira Sdn Bhd for housekeeping services at JB Sentral Building in Johor Bahru has been accepted by KCJ Engineering Sdn Bhd.

$AWC / 7579 (AWC BERHAD)

$AWC / 7579 (AWC BERHAD) Replenishes Engineering Orderbook - Wins Data Centre Contract From Gamuda Engineering Worth RM 19.9 Million

Bursa Announcement:
https://cutt.ly/BeWs2QYQ

For media queries, please contact:
corp.news@bcta.com.my

$AWC / 7579 (AWC BERHAD) Executes A Complete Turnaround For FY24 Boosted By Strong Environment Division Profits–Delivers Revenue Of RM399m & PATAMI Of RM19.7m

Bursa Announcement:
https://cutt.ly/demxPtdv

For media queries, please contact:
corp.news@bcta.com.my

PETALING JAYA: AWC Bhd has accepted a letter of award from CBTech (M) Sdn Bhd worth RM10.2mil for sub-contract works for a multi-block serviced apartment development in Kuala Lumpur for UEM Land Bhd.

$AWC / 7579 (AWC BERHAD) Enters Into MOU With Beijing Energy Envision Linking Smart Technology & Zhizi Automotive Technology

Bursa Announcement:
https://cutt.ly/lexR2atm

For media queries, please contact:
corp.news@bcta.com.my

Titan Trading Notes For Tuesday [9/7/2024]

$KLSE-KLCI had a brief retracement back towards the 1611 points region with an overall mixed market sentiment during last Friday as we still saw around 670 counters closing red for the day along with it. Daily trading volume settled around the 4.3 billion mark, which is still ok for now.

Main stocks that showed strong buying momentum would be the likes of NOVAMSC, SNS, ORGABIO, PERDANA, GOCEAN, YBS, MSTGOLF, SIAB, UUE, SCGBHD, MIKROMB, and CABNET. All of which were able to sustain their rallies throughout the day on the top volumes list despite the mixed market sentiment.

$ORGABIO / 0252 (ORGABIO HOLDINGS BERHAD) since its earlier breakout towards the RM 0.46+ major resistance levels, had been retracing and consolidating over the past 2 months here with RM 0.37+ as its mains support levels.

On Friday, it was able to stage a huge breakout from its RM 0.45+ major resistance levels and rallied all the way towards the RM 0.50 regions with huge volume and buying momentum here, suggesting a strong uptrend continuation pattern.

Will be monitoring ORGABIO closely here as something big seems to be brewing.

$YBS / 0025 (YBS INTERNATIONAL BERHAD) on the other hand also had a huge breakout from its RM 0.82+ major resistance levels with huge volume, rallying all the way towards the RM 0.96 regions here despite being overbought.

For now definitely looking very strong here and as long as able to sustain above its RM 0.90+ immediate support levels, could continue on towards and beyond the RM 0.96+ regions for an uptrend continuation pattern.

Will be monitoring YBS closely here to see how far it can go.

$AWC / 7579 (AWC BERHAD) since breaking out towards the RM 1.19 regions, had been retracing over the past 1- 2 months here with RM 1+ as the main support levels and last week, was able to breakout from its RM 1.05+ immediate downtrend resistance with good volume and buying momentum.

For now looking quite strong here and as long as able to hold above its RM 1 - RM 1.04 immediate support levels as a higher low, could continue on towards and beyond its RM 1.20+ regions soon for an uptrend continuation pattern.

Will be monitoring AWC closely here

Additional Listing Announcement /Subdivision of Shares

Additional Listing Announcement /Subdivision of Shares

Change in Audit Committee - DATO' DR HJ SHAMSUL ANWAR BIN SULAIMAN

Change in Boardroom - DATO' DR HJ SHAMSUL ANWAR BIN SULAIMAN

Change in Risk Committee - DATO' DR HJ SHAMSUL ANWAR BIN SULAIMAN

Change in Nomination and Remuneration Committee - DATO' DR HJ SHAMSUL ANWAR BIN SULAIMAN

Additional Listing Announcement /Subdivision of Shares

AWC - Notice of Book Closure

$AWC / 7579 (AWC BERHAD) Reports 3QFY24 Revenue Of RM91.2M and PBT OF RM7.9M – Declares Interim Dividend of 0.5 sen

Bursa Announcement:
https://cutt.ly/zey19t0A

For media queries, please contact:
corp.news@bcta.com.my

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

First Interim Dividend

MEMORANDUM OF UNDERSTANDINGAWC BERHAD ("AWC" OR "THE COMPANY") - UPDATE ON THE STATUS OF MEMORANDUM OF UNDERSTANDING

@B I think some certain names in consumer segment will have a catch up. I'm personally bullish on $OFI / 7107 (ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD) and have invested some. General thought is this... Inflation is going to be intensely felt by the general public... (petrol subsidy going away + sugar next?), imported snacks are going to be more expensive now ringgit is weak hence there will be more demand to local made products whilst leaving some rooms for asp increment for the company's products... Plus, their export is also gaining traction. And who can say no to super ring?

Lets see how things will be in the upcoming result but I suspect it will be good.

@zhugeliang123 I had limited capital so I had to pick between $CLOUDPT / 0277 (CLOUDPOINT TECHNOLOGY BERHAD) and INFOTEC ; I believe both are similar and strong companies, I recalled I picked the former cos I prefer their client concentration risk, wider the product / service range (infotec if not mistaken 50% contribution from dell), client relationship and potential outlook.

Btw, I think we need to take a closer look at the often misunderstood $VSTECS / 5162 (VSTECS BERHAD) who is the connector of most things you mentioned.

@DanVee I switched some of my YTLP profits to some lagging oil n gas names like Keyfield and CARIMIN, OFI as mentioned above, I also like $AWC / 7579 (AWC BERHAD) due to its full acquisition of Stream, $E&O / 3417 (EASTERN & ORIENTAL BERHAD) for land scarcity in Penang and abit of tech names.

RHB's Top 20 Malaysia Small Cap Jewels 2024 Edition!

$ABLEGLOB / 7167 (ABLE GLOBAL BERHAD) $AWC / 7579 (AWC BERHAD) $CLOUDPT / 0277 (CLOUDPOINT TECHNOLOGY BERHAD) $DELEUM / 5132 (DELEUM BERHAD) $ENGTEX / 5056 (ENGTEX GROUP BERHAD) and more!

Additional Listing Announcement /Subdivision of Shares

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Intention to Deal During Closed Period