AWC

AWC

Postby winston » Mon Aug 22, 2016 11:44 am

not vested

AWC poised to ride on IoT wave

BY TOH KAR INN

PETALING JAYA: AWC Bhd is positioning itself to take advantage of the next wave of growth spurred by the Internet of Things (IoT).

The engineering and facility services provider will also build up its talent management and improve productivity to seize the opportunities arising from the influx in high-rise buildings and the Trans-Pacific Partnership Agreement.

Chief executive officer Datuk Ahmad Kabeer Mohamed Nagoor said AWC’s current order book stood at RM1.2bil, of which RM500mil contracts would help sustain the company for the next two financial years from 2017 to 2018.

With a sustainable recurring income, the group is focusing on managing cost efficiencies.

He told StarBiz that the group would focus on nurturing and acquiring talents.

“We have to take technology into account and see how we can integrate and enhance it further in our platforms.

“In the next five to 10 years, the convergence of Rapid KL and mass rapid transit lines with high rise buildings in the Greater KL region will require sophistication in terms of Integrated Facility Management (IFM), IoT and digitalisation.

“We must be prepared to face the market at that point in time,” said Ahmad Kabeer.

Citing Bandar Malaysia development as an example, he said that AWC should be at the forefront of its capabilities by the time construction of the buildings are completed.

AWC reported revenue of RM75.33mil and net profit of RM5.76mil for its third quarter ended March 2016.

For its cumulative nine-month earnings, AWC registered revenue of RM173.34mil and net profit of RM10.76mil, an increase of 84% and 92.5% respectively, as compared with the corresponding period last year.

“As for our fourth quarter results, we hope to match last quarter’s figures,” said Ahmad Kabeer.

The company’s three core businesses are facilities, environment and engineering, contributing 40%, 31% and 29% respectively, to the group’s revenue.

AWC manages facilities under concessions, healthcare industry as well as commercial buildings.

Concessions continue to make up bulk of AWC’s facility management segment, with its latest concession procurement being the 10-year contract renewal for the maintenance and support services of government buildings.

The renewal of its concession is worth RM555mil, for relevant government buildings in Malacca, Negri Sembilan, Johor and Sarawak.

Apart from concessions, there are two types of contracts that the group takes on, namely maintenance contracts for its facility management division and construction-based contracts for its environment and engineering divisions.

The contracts have an average duration of two to three years.

While its facility management under the healthcare industry is a relatively new segment, AWC believed that it could further tap into the market.

The group is a total solutions provider, as besides IFM, it also offers waste management services under its environment segment, and plumbing under the engineering division.

AWC has already undertaken several Stream Automated Waste Collection System (Stream AWCS) projects in Abu Dhabi, Hong Kong and Singapore.

Not only did AWC implement Stream AWCS in the Changi general hospital in Singapore, it had added a waste and laundry collection system to one of the buildings as well.

“The 300-bed Shah Alam Hospital maintenance sub-contract secured in February this year is our headstart in the healthcare sector.

“Whether we can secure more jobs in the healthcare sectorwill depend on the outcomes of tender bids, which we will participate in.

“Of course there is also a larger market out there – private hospitals,

“It is a very competitive field but we will definitely want to be there, which is why we are preparing ourselves now,” said Ahmad Kabeer.

Prior to the Shah Alam hospital, AWC was involved in maintenance works of the Cheras rehabilitation hospital and all state government clinics in Johor.

Apart from the healthcare sector, AWC manages food waste from airline catering businesses.

The Stream AWCS technology has been implemented at the Cathay Pacific Catering Centre in Hong Kong.

AWC is also growing its rain water harvesting business which has big potential in line with the number of high rise buildings in Kuala Lumpur and the adoption of green building practices.

AWC’s peer is UEM Edgenta Bhd, which operates in similar landscapes.

UEM Edgenta is currently trading at a price-earnings multiple (P/E) of 16.42 times, while AWC is trading at a P/E of 16.32 times.

However, the only similar segment that both companies have is healthcare.

UEM Edgenta’s healthcare building contracts are under the purview of the Health Ministry, while AWC’s Shah Alam Hospital contract is under the purview of Works Department.

Most contracts for the maintenance of government hospital are usually packaged in concessions.

AWC secured the Shah Alam hospital contract under an ordinary tender bid that was not part of a concession.

The company aims to further expand its environment related services internationally, while other segments will focus on the domestic front.

“Stream AWCS is a homegrown global brand and we would like to see our engineering and facility divisions to move in the same direction.

“But for now, we will focus on expanding our domestic reach for engineering and facility,” said Ahmad Kabeer.

Source: The Star

http://www.thestar.com.my/business/busi ... -iot-wave/
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Re: AWC

Postby winston » Mon Aug 22, 2016 11:47 am

June 9, 2016

not vested

Scores RM130m facilities win

AWC wins a five-year RM130m facilities management contract for the Bandar Tasik Selatan integrated bus terminal.

A positive surprise; we had not imputed any new contract wins for the facilities unit.

We raise our FY17-18F EPS forecasts by 8%.

Our SOP-based target price is raised to RM1.19.

The new contract wins and special dividends are potential re-rating catalysts.

Maintain Add.

Raise target price

We maintain our Add rating with a higher SOP-based target price of RM1.19, after factoring in our upgraded earnings forecasts.

The stock is attractively valued at 9.2x FY17F P/E and FY17F ex-cash P/E of 6.5x.

Key risks to the achievement of our target price include project execution and delays.

Potential re-rating catalysts are more contract wins and special dividends.


Source: CIMB

https://brokingrfs.cimb.com/WQyFg_VI4wa ... rK6gQ2.pdf
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Re: AWC

Postby winston » Mon Aug 22, 2016 12:02 pm

6 May 2016

CIMB initiates coverage on AWC Bhd with a target price of RM1.13

KUALA LUMPUR : CIMB Research has initiated coverage on AWC Bhd with a price target of RM1.13 per share and cited its diversified businesses as a major plus point for its future earnings outlook.

In a note today, the research house said AWC offers investors a well-balanced earnings base of stable, recurring cashflows from its concession business and a fast-growing portfolio of environmental businesses.

Among them are STREAM, a globally competitive underground waste collection system, QDT, a renowned plumbing engineering company, and DDT, a rain water harvesting systems business, it said.

“STREAM gas more than 90% market share in Malaysia. QDT has been highly profitable, as it operates in a very small niche market for high-end and high-rise buildings.

DDT's margins have also expanded sharply as rainwater harvesting systems are increasingly being made mandatory by the government in several states,” CIMB explained.

Additionally, AWC has a stable cashflow thanks to its concession business. The company has been maintaining federal government buildings in the southern region and Sarawak since 1998.

The concession which is worth approximately RM555mil was recently renewed for 10 years at RM52 mil per annum for the first five years and steps up thereafter, said CIMB.

AWC also provides similar building maintenance work for commercial and private sectos clients, such as a RM90mil concession for the Shah Alam Hospital that it had secured recently.

Furthwermore, AWC's net cash position of 24 sen per share makes up close to 40% of its current capitalisation with little to no borrowings.

“The cash is unencumbered and in excess of operational requirements, according to the management. We believe there is substantial scope for special dividends given that the group has already locked in the concession rates for the next 10 years.

Our forecast dividend yields of between 3.2% and 4.8% exclude any potential special dividends,” it said.

AWC's shares have rallied strongly in recent weeks. Over the past one month, its stock price has gone up to as 68 sen from 45.5 sen.

As at 4:10PM today, AWC's shares were last traded at 68 sen, ot a 5.5 sen increase from yesterday's close.

Source: The Star
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Re: AWC

Postby winston » Wed Aug 24, 2016 9:31 am

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Smashing end to the year

AWC’s full-year net profit of RM17.2m smashed our RM15.1m estimate.

All divisions contributed to the outperformance, in particular STREAM.

Final DPS of 1 sen declared, bringing full-year DPS to 2.5 sen, above our estimate.

Contract wins for STREAM and plumbing are potential re-rating catalysts.

Maintain Add with an unchanged SOP-based target price.

Key risks to the achievement of our target price include project execution and delays.

What is the next catalyst?

AWC has an estimated outstanding orderbook of c.RM500m up till FY18:
1) Facilities (RM260m),
2) STREAM (RM100m),
3) M&E/HVAC (RM60m) and
4) Plumbing (RM80m).

We believe that contract wins in STREAM and Plumbing, given their highmargins, could be re-rating catalysts, as they would sustain earnings visibility in FY17-18.

Given the slew of high-rise office buildings coming up in the Klang Valley, we believe that private sector facilities maintenance contracts are also in the pipeline.


Add maintained

We maintain our Add rating with an unchanged SOP-based target price of RM1.19, after tweaking our forecasts for housekeeping. The stock is attractively valued at 10.4x FY17F P/E and FY17F ex-cash P/E of 7.7x.

Key risks to the achievement of our target price include project execution and delays.

Potential re-rating catalysts are more contract wins and special dividends.


Source: CIMB

https://brokingrfs.cimb.com/lNQmQnHEtHq ... f45LA2.pdf
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Re: AWC

Postby winston » Wed Aug 21, 2019 11:21 am

not vested

Trading Buy: AWC - 7579
Solid order book and balance sheet to cushion adversity
(Last price: RM0.710, Potential upside +19.7%)

Company Profile

AWC is a leading, Malaysian-grown, engineering services group in Asia providing Total Building Solutions.

It operates in four main business segments:-
1) integrated facilities management or IFM (49% of 9MFY19 revenue)
2) Engineering (22% of 9MFY19 revenue)
3) Environment (19% of 9MFY19) and
4) Rail (10% of 9MFY19 revenue).


Trading Catalyst

We like AWC’s asset management business model for its:
(i) substantial order book c.RM1.1bn (providing about four years earnings visibility)
(ii) healthy balance sheet (net cash of 13.8sen)
(iii) positive growth in the Total Building Solutions industry
(iv) reputable clientele (mainly from Malaysia, Singapore and Middle East) with a high chance of securing future tenders.

Valuations are undemanding at 6.7x FY20 P/E (46% below its peers and 35% below its 10Y mean of 10.3x), supported by strong earning CAGR of 17% from FY18-21).

Although share prices could see mild pullback following yesterday 9.2% rally, a decisive LT downtrend line breakout above RM0.72 could see a potential downtrend reversal, targeting higher upsides at RM0.74-0.85 zones.

Technical View
Resistance: RM0.740 / RM0.775 / RM0.850
Support: RM0.685 / RM0.670
Cut loss: RM0.640

Key Financial Stats
Trading at 6.7x FY20E (Ex-cash only at 5.4x), supported by net cash of 13.8sen and 17% EPS CAGR from FY18-21

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: AWC

Postby winston » Wed Aug 21, 2019 11:21 am

not vested

Trading Buy: AWC - 7579
Solid order book and balance sheet to cushion adversity
(Last price: RM0.710, Potential upside +19.7%)

Company Profile

AWC is a leading, Malaysian-grown, engineering services group in Asia providing Total Building Solutions.

It operates in four main business segments:-
1) integrated facilities management or IFM (49% of 9MFY19 revenue)
2) Engineering (22% of 9MFY19 revenue)
3) Environment (19% of 9MFY19) and
4) Rail (10% of 9MFY19 revenue).


Trading Catalyst

We like AWC’s asset management business model for its:
(i) substantial order book c.RM1.1bn (providing about four years earnings visibility)
(ii) healthy balance sheet (net cash of 13.8sen)
(iii) positive growth in the Total Building Solutions industry
(iv) reputable clientele (mainly from Malaysia, Singapore and Middle East) with a high chance of securing future tenders.

Valuations are undemanding at 6.7x FY20 P/E (46% below its peers and 35% below its 10Y mean of 10.3x), supported by strong earning CAGR of 17% from FY18-21).

Although share prices could see mild pullback following yesterday 9.2% rally, a decisive LT downtrend line breakout above RM0.72 could see a potential downtrend reversal, targeting higher upsides at RM0.74-0.85 zones.

Technical View
Resistance: RM0.740 / RM0.775 / RM0.850
Support: RM0.685 / RM0.670
Cut loss: RM0.640

Key Financial Stats
Trading at 6.7x FY20E (Ex-cash only at 5.4x), supported by net cash of 13.8sen and 17% EPS CAGR from FY18-21

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Posts: 118522
Joined: Wed May 07, 2008 9:28 am


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