PETALING JAYA: AWC Bhd
’s growth prospects appear promising as the company positions itself to ride robust demand for sustainable urban infrastructure projects across Singapore and Malaysia, analysts say.
The engineering services group is also expanding its recurring income base through long-term operations and maintenance contracts.
The company’s outlook remains buoyant, supported by healthy tender activity, new technology adoption, and opportunities arising from regional green-building initiatives.
According to Apex Research, AWC’s tender pipeline remains healthy at around RM100mil, mainly supported by opportunities in Singapore and Malaysia.
The research house noted that in Singapore, demand for automated waste collection systems (AWCS) is underpinned by the National Environment Agency’s (NEA) mandate requiring all new Housing and Development Board (HDB) and private developments to install such systems.
“In Singapore, demand remains strong under the NEA-mandated rollout of AWCS for all new HDB and private developments, with around 50,000 HDB units scheduled for launch between this year and 2027,” the research house said.
Apex Research added that AWC’s subsidiary, Stream Environment (S) Pte Ltd, is well placed in the hospital segment as well, supported by the Singapore’s Healthier SG infrastructure programme.
The research house highlighted that the hospital projects typically involve multi-pipeline systems and stainless-steel components with stringent hygiene standards, translating into higher margins compared with residential developments.
In Malaysia, growth prospects are driven by the adoption of AWCS in new smart-city and township developments.
“In Malaysia, growth is driven by smart-city and township developments in the Klang Valley and Johor, as developers adopt AWCS to meet Green Real Estate and Green Building Index certification standards in line with the country’s energy-transition agenda,” said Apex Research.
Apex Research maintained its “buy” call on AWC, with an unchanged target price of 92 sen, citing the group’s leading position in the AWCS market; predictable cash flows; and promising growth prospects from untapped projects in Abu Dhabi, which could contribute up to RM1bil in potential jobs.
