AWC BERHAD’s Q3 FY2025 Performance: Navigating Challenges with a Robust Orderbook
Greetings, fellow investors! Today, we’re diving deep into the latest financial performance of AWC BERHAD, a diversified Malaysian company with a strong presence in facilities management, environmental engineering, and rail services. Their Third Quarter (Q3) report for the financial year ending 31 March 2025 has just landed, offering a glimpse into their operational resilience and strategic direction amidst evolving market conditions.
While the quarter saw some quarter-on-quarter adjustments, the company’s cumulative performance for the nine months remains on a positive trajectory, underpinned by a substantial orderbook and a recent dividend payout, signalling confidence in their financial health. Let’s unpack the numbers and see what AWC BERHAD has been up to.
Core Data Highlights: A Closer Look at the Numbers
AWC BERHAD’s latest quarterly report provides a comprehensive overview of its financial standing. Here’s how the key figures stack up for the individual quarter and the cumulative nine-month period compared to the previous year.
Quarterly Performance (Q3 FY2025 vs Q3 FY2024)
Q3 FY2025
Revenue: RM98,576,000
Profit Before Taxation (PBT): RM7,671,000
Profit After Taxation (PAT): RM5,701,000
Basic Earnings Per Share: 1.75 sen
Q3 FY2024
Revenue: RM91,229,000
Profit Before Taxation (PBT): RM7,866,000
Profit After Taxation (PAT): RM6,433,000
Basic Earnings Per Share: 2.02 sen
For the third quarter, AWC BERHAD reported a revenue increase of approximately 8.1% to RM98.58 million compared to RM91.23 million in the corresponding quarter last year. This growth indicates a stronger top-line performance. However, Profit Before Taxation (PBT) saw a slight decrease of about 2.5% to RM7.67 million, and Profit After Taxation (PAT) declined by roughly 11.4% to RM5.70 million. This suggests that while revenue grew, profitability was impacted by higher operating costs or other factors, leading to a lower earnings per share.
Cumulative Performance (9M FY2025 vs 9M FY2024)
9M FY2025
Revenue: RM309,738,000
Profit Before Taxation (PBT): RM23,943,000
Profit After Taxation (PAT): RM18,206,000
Basic Earnings Per Share: 5.56 sen
9M FY2024
Revenue: RM296,858,000
Profit Before Taxation (PBT): RM22,064,000
Profit After Taxation (PAT): RM17,587,000
Basic Earnings Per Share: 3.94 sen
Looking at the cumulative nine-month period, the picture is more encouraging. Revenue increased by approximately 4.3% to RM309.74 million. PBT grew by about 8.5% to RM23.94 million, and PAT saw a modest rise of around 3.5% to RM18.21 million. Most notably, basic earnings per share surged by approximately 41.1% to 5.56 sen, reflecting improved overall profitability for the year to date attributable to owners of the company.
Quarter-on-Quarter (QoQ) Comparison (Q3 FY2025 vs Q2 FY2025)
Compared to the immediate preceding quarter (Q2 FY2025), AWC BERHAD’s revenue decreased by 15.6% from RM116.80 million to RM98.58 million. Consequently, Profit Before Taxation also saw a decline of 10.1% from RM8.53 million to RM7.67 million. This quarter-on-quarter dip was primarily attributed to lower revenue contributions across all divisions, particularly Facilities and Rail, as highlighted in the report.
Balance Sheet and Cash Flow Snapshot
As at 31 March 2025, AWC BERHAD’s total assets stood at RM434.20 million, with total equity at RM223.36 million, resulting in a net asset per share of 68.2 sen, up from 65.4 sen at 30 June 2024. A notable positive is the reduction in total loans and borrowings to RM99.47 million from RM134.27 million, indicating a healthier financial structure.
The company’s cash flow from operations significantly improved, generating RM21.48 million for the nine-month period, a substantial increase from RM9.35 million in the prior corresponding period. This strong operational cash generation, coupled with reduced investing outflows, led to a net increase in cash and cash equivalents of RM8.18 million, turning around from a net decrease in the previous year.
Segmental Performance Insights
AWC BERHAD’s diverse business units showed mixed performance in Q3 FY2025:
| Division | Q3 FY2025 Revenue (RM’000) | Q3 FY2024 Revenue (RM’000) | Revenue Change (%) | Q3 FY2025 PBT (RM’000) | Q3 FY2024 PBT (RM’000) | PBT Change (%) |
|---|---|---|---|---|---|---|
| Facilities | 53,167 | 50,720 | +4.8% | 413 | 379 | +9.4% |
| Environment | 21,640 | 26,144 | -17.2% | 6,188 | 5,974 | +3.6% |
| Engineering | 19,906 | 16,437 | +21.1% | 1,813 | 2,460 | -26.3% |
| Rail | 11,424 | 4,257 | >+100% | 992 | 452 | >+100% |
| Investment Holdings | 5,656 | 25,480 | -77.8% | 3,928 | 23,614 | -83.4% |
The **Facilities Division** saw a revenue increase driven by new projects, with a slight improvement in PBT. The **Environment Division** experienced a revenue decline due to slower project progress in Singapore and Abu Dhabi, yet managed to improve its PBT, indicating better cost management. The **Engineering Division** recorded higher revenue from its Plumbing segment but a lower PBT, primarily because the prior year’s corresponding quarter benefited from a significant trade receivable recovery. The **Rail Division** showed impressive growth in both revenue and PBT, more than doubling its figures due to higher order fulfillment and project deliverables. The **Investment Holdings** segment saw a significant drop in both revenue and PBT, which largely explains the overall PBT decline for the quarter.
Risks and Prospects: Charting the Future Course
Despite the global economic challenges, AWC BERHAD’s Board maintains a cautious yet optimistic outlook for the final quarter of the current fiscal year. This confidence is largely bolstered by a substantial orderbook of RM651 million, providing clear earnings visibility for the foreseeable future.
Divisional Prospects:
- Facilities Division: The long-term prospects are positive, especially with the 10-year Concession Agreement for maintenance in the Southern Region and Sarawak (until 31 December 2025). The Critical Asset Refurbishment Programme (CARP) contract, valued at RM140 million over ten years, is expected to be a consistent contributor to revenue and profit. Existing commercial and healthcare maintenance contracts also continue to provide stable contributions.
- Environment Division: This division has secured contracts that extend for the next three financial years, ensuring continued positive contributions from project progress and recognition.
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Engineering Division:
- Air Conditioning Segment: Projects are mostly in the Defects Liability Period (DLP), and management has streamlined costs, so no significant negative contributions are expected moving forward.
- Plumbing Segment: Projects are on track and anticipated to contribute positively for the next two to three financial years. The segment is actively engaging in value engineering to mitigate the impact of higher material costs.
- Rail Division: The division is actively pursuing new rail-related projects and procurement opportunities both domestically and regionally, leveraging its existing agency and principal representations.
Potential Risks:
While the outlook is generally positive, AWC BERHAD is not immune to challenges. The report highlights:
- Slower project progress in certain regions (e.g., Singapore and Abu Dhabi for Environment Division) can impact revenue recognition.
- Fluctuations in order fulfillment and project deliverables, as seen in the Rail division’s quarter-on-quarter performance.
- Rising material costs, particularly in the Engineering (Plumbing) segment, which necessitates proactive strategies like value engineering.
- Ongoing material litigation, such as the arbitration case seeking RM2.16 million, poses a financial and operational risk until resolved.
Shareholder Returns: A Note on Dividends
AWC BERHAD continues to return value to its shareholders. On 28 March 2025, the company paid an interim Single-Tier Dividend of 0.75 sen per ordinary share for the financial year ending 30 June 2025, amounting to approximately RM2.5 million. This reflects the company’s commitment to shareholder returns.
Summary and
AWC BERHAD’s Third Quarter FY2025 report presents a mixed but overall resilient performance. While the individual quarter saw some profit moderation due to specific divisional dynamics and lower contributions from investment holdings, the cumulative nine-month results demonstrate solid growth in revenue and, importantly, a significant increase in earnings per share. The strong operational cash flow generation and reduction in borrowings are positive indicators of financial health and efficiency.
The company’s substantial RM651 million orderbook provides a clear runway for future earnings, and strategic contracts like the CARP in the Facilities Division promise stable, long-term contributions. The proactive measures in the Engineering Division to streamline costs and mitigate material price increases are commendable. The Rail Division’s impressive growth also points to new opportunities being successfully capitalized upon.
However, investors should remain aware of potential headwinds. These include:
- The impact of global economic challenges on project timelines and new contract awards.
- Divisional specific slowdowns and the need for consistent project execution across all segments.
- The ongoing arbitration case, which represents a contingent liability.
- The management of cost pressures, particularly related to raw materials.
Overall, AWC BERHAD appears to be on a stable path, leveraging its diverse portfolio and robust orderbook to navigate the current economic landscape. The company’s focus on operational efficiency and strategic pursuit of new projects positions it for continued positive performance.
Final Thoughts and Your Perspective
As a retail investor in Malaysia, understanding these reports is key to making informed decisions. AWC BERHAD’s latest update shows a company with foundational strength and clear future plans, but also facing the realities of project-based businesses. The balance between growth initiatives and risk management will be crucial for its sustained success.
What are your thoughts on AWC BERHAD’s latest performance? Do you believe the company can maintain this growth momentum in the next few years, especially with its significant orderbook? Share your views in the comments section below! And if you found this analysis helpful, be sure to check out our other deep dives into Malaysian company reports.
