PETALING JAYA: AWC Bhd
’s recent contract win in India provides tangible evidence of the company’s execution on its stated strategy.
Apex Research said it views the contract award positively, as it is the “first hard evidence of the India pivot”.
The research house also noted “the size is small, but that is not the point”.
“While the RM13.1mil contract is small, the reference site matters more: GIFT City is a flagship smart-city development in Gujarat, giving AWC a foothold from which a successful automated waste collection system installation could support follow-on phases and other smart-city opportunities in India.
“We see this as an important first step in building AWC’s India track record,” the research house said in a report yesterday.
Apex Research estimates about RM1.8mil profit after tax (PAT) over 36 months, or about RM0.6mil per annum (about 2% of its financial year 2027 (FY27) core net profit of RM29.4mil) assuming a 14% PAT margin.
The research house said including this win and the RM23.1mil data centre (DC) contract secured in August 2026, AWC’s order book has risen to about RM860.5mil (1.9 times FY26 revenue).
AWC, via its indirect wholly-owned subsidiary Stream Industries Sdn Bhd (STREAM), has signed two agreements with Gujarat International Finance Tec-City Company Limited to connect upcoming developments in GIFT City, Gandhinagar, to an AWCS network.
The Domestic Tariff Area contract is worth 19.82 crore rupees (about RM8.4mil, inclusive of the goods and services tax or GST), while the Special Economic Zone contract is worth 11.03 crore rupees (about RM4.7mil, zero-rated for the GST).
Both contracts run for 36 months from the notice to commence.
STREAM intends to novate both agreements to a newly incorporated Indian entity once established.
“Environment remains the group’s key swing factor.
“Malaysia and Singapore should stay steady, while the Middle East remains soft amid ongoing geopolitical disruption.”
“This win represents about 29% of our RM45mil India contract assumption for FY27,” Apex Research said.
The research house noted that elsewhere, AWC’s engineering division’s record about RM100mil DC order book and the RM99.1mil TM Technology Services IFM contract also continue to anchor its near-term earnings visibility.
Apex Research said it made no changes to its earnings forecasts, as the contracts fall within its FY27 India contract assumption of RM45mil.
The research house maintained its “buy” call for AWC with an unchanged sum-of-the-parts target price of RM1.22 (fully diluted).
“We value engineering at 15 times, environment at 13 times as well as facilities and rail at 7 times each, all on FY28 earnings.
“We like AWC for its two independent entry points into the DC theme via engineering and facilities; early traction on the India smart-city pivot; predictable cash flows from long-term concessions, and a net cash balance sheet in every year since its 2003 listing,” Apex Research said.
