PETALING JAYA: AWC Bhd
has two distinct revenue streams that are tied to the same structural trend – data centres (DCs).
In a report, Apex Securities Research said the engineering services provider is one of the very few local listed companies that have exposure on both the construction and maintenance sides.
“The two divisions compete independently – a DC owner is free to choose a different maintenance provider than its original builder – but together they give the group two separate, uncorrelated points of entry into the same structural theme.”
For its engineering side, AWC has secured three DC contracts in the past 12 months, and its dedicated DC order book has reached an all-time high of about RM100mil.
On its maintenance side, the group bagged a RM99.1mil five-year contract with TM Technology Services Sdn Bhd that will last until October 2030.
“At roughly RM20mil of contracted revenue per year, this is exactly the kind of sticky, defensive cash flow that a construction-only DC player cannot access,” Apex Research pointed out.
The research house noted that India is emerging as AWC’s next growth engine, as the group redeploys capacity in the Middle East due to a softening market.
AWC also said it sees India as a substantial and underappreciated opportunity in the country’s emerging smart city and airport build-out.
“The pivot is logistically almost frictionless: AWC’s Middle East workforce is predominantly Indian nationals, geographically close to home, and already fluent in navigating India’s regulatory and operating environment.”
