AWC Berhad – Shah Alam Hospital HSS Contract Extended. Worth RM26.14 million

AWC has secured a RM22.2m data centre plumbing contract from a joint venture contractor for the execution and completion of plumbing, silo tank and internal sanitary works.

In its report, Apex Research says: “We view the award positively, as this is Qudotech’s second data centre subcontract win for FY26, bringing AWC’s outstanding orderbook to RM958.3m, equivalent to 2.3x FY25F revenue.

“Assuming a c.21% PBT margin, the contract is estimated to generate c.RM4.7m in PBT over the next CY, equivalent to c.16% of our FY26F PBT of RM29.5m.

“Maintain our BUY recommendation with a higher TP of RM0.69, applied to rolled forward FY27F EPS of 7.7 sen, alongside a three-star ESG rating.“

Secures RM22.2m Data Centre Plumbing Contract

AWC, via its wholly owned subsidiary Qudotech Sdn Bhd, has accepted a Letter of Acceptance (LoA) from a joint venture contractor for the execution and completion of plumbing, silo tank and internal sanitary works for a data centre project. The contract, valued at RM22.2m, commenced on 9 January 2026 and is scheduled for completion by 27 December 2026.

“We view the award positively, as this is Qudotech’s second data centre subcontract win for FY26. Assuming a c.21% PBT margin, the contract is estimated to generate c.RM4.7m in PBT over the next CY, equivalent to c.16% of our FY26F PBT of RM29.5m. Following this win,
AWC’s outstanding order book increases to RM958.3m (2.3x FY25F revenue), providing solid short-term earnings support,” says Apex.

AWC Berhad Outlook

Earnings growth in 2HFY26 is expected to remain steady, underpinned by progressive revenue recognition from c.RM450m of contracts secured in FY26 across its segments.

“We anticipate further contract wins, particularly within the engineering segment, as the Group continues to participate in data centre-related tenders in both Malaysia and Singapore.

“As at December 2025, its tenderbook stands at RM3.3bn, comprising facilities (64.6%), engineering (17.0%), rail (15.1%) and environment (3.3%). That said, the Middle East remains an overhang,” analysts at Apex say,

Earnings Revision: No changes to earnings forecasts, as the contract win is within our FY26F order book replenishment assumptions.

Valuation: Maintain our BUY recommendation with a higher TP of RM0.69, applied to rolled forward FY27F EPS of 7.7 sen, alongside a three-star ESG rating. We like AWC for its (i) dominant market position (90% AWS share in Malaysia, 40% in Singapore), (ii) predictable cash flows from long-term concessions, (iii) strengthened order book of RM958.3m (2.3x FY25 revenue), and (iv) a clean net cash balance sheet.

Risks: Failure to secure improved rates for government concession contracts under the IFM segment, continued softness in the Middle East affecting the Environment Division contributions, and failure to maintain margin resilience and lower orderbook replenishment in the Rail segment following recent declines in product mix profitability.

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