PETALING JAYA: Engineering services outfit AWC Bhd
’s securing of a second pneumatic waste conveyance system (PWCS) project in Singapore valued at RM14.8mil further solidifies the company’s position as a trusted partner for the country’s Housing and Development Board (HDB), says Apex Securities.
To recap, AWC announced that its sub-subsidiary, Stream Environment (S) Pte Ltd, received a letter of acceptance from the HDB to design, build and operate a PWCS at Project EW and FM over two phases.
“We view the award positively as it reinforces Stream Singapore’s position as a key incumbent in Singapore’s PWCS market.
“Around 95% of the contract value pertained to design and build, with the remaining 5% tied to operations and maintenance (O&M, typically over two years),” the research house said.
Apex Securities expected earnings contribution to begin in AWC’s financial year ending June 30, 2026 (FY26) during the design phase, with a larger share recognised in FY27 to FY28 as construction ramps up, and the remainder in FY29.
It projected the contract to generate RM1.3mil in profit before tax over the 36-month duration.
“While modest in size, the award enhances AWC’s multi-year earnings visibility and expands its recurring O&M pipeline in Singapore, estimated at circa RM400,000 revenue per annum post-completion based on the 5% O&M allocation over a two-year maintenance term.
It noted that Stream Singapore, being one of the key incumbents for HDB’s plans to build 55,000 apartments, “is well positioned to secure additional PWCS packages and expand its recurring O&M pipeline in Singapore.
