| Investment Bank | Malacca Securities |
|---|---|
| TP (Target Price) | RM0.66 (+14.8%) |
| Last Traded | RM0.575 |
| Recommendation |
A wholly-owned subsidiary of AWC Berhad, Ambang Wira Facilities Sdn Bhd (AWFSB), has successfully secured a significant facilities management and maintenance contract from the Public Works Department of Malaysia (JKR). This notable win reinforces the group’s market position and provides long-term earnings visibility.
The contract, valued at RM52.3 million, is for the Kompleks Masjid Putra in Putrajaya and is set to span five years and three months. Commencing on February 1, 2026, and concluding on April 30, 2031, this award marks AWC’s seventh contract win in the current financial year (FY26), collectively boosting its total contract wins to approximately RM382 million for the year.
Analyst’s Perspective
Malacca Securities (M+Global) views this contract award positively, highlighting its role in strengthening AWC’s leadership in Malaysia’s facilities management sector. The lengthy tenure of the contract is expected to provide stable earnings visibility for the Facilities Division throughout FY26-FY31. The investment bank estimates that the contract will contribute approximately RM4.2 million to RM5.2 million to AWC’s earnings over its duration, based on a conservative net profit margin of 8% to 10%.
Valuation and Recommendation
The analyst noted that this job win was within their expectations, leading to a maintenance of their current earnings forecasts for AWC Berhad. Consequently, Malacca Securities has reiterated its “Buy” recommendation for AWC with an unchanged target price (TP) of RM0.66. The target price is derived by applying a P/E ratio of 10.0x to the projected mid-FY27f fully-diluted earnings per share (EPS) of 6.58 sen.
