Budget 2027 is pegged at RM459.8bn, and Malacca Securities Research has named construction as one of four themes most likely to benefit. Within that group, the research house lists AWC Berhad alongside Gamuda, HKB and Suncon, with a BUY call and a RM0.80 target price.
What AWC Berhad Does Within the Budget 2027 Theme
According to Malacca Securities Research, AWC Berhad sits in its Construction and Engineering basket of Budget 2027 beneficiaries. The research note’s summary does not detail the company’s business segments or project pipeline, so the thesis rests on the sector grouping rather than company-specific disclosures.
The house ties the theme to infrastructure spending and to its recently published 4Q26 strategy, which already flagged construction exposure to data centres, power-related projects and semiconductor automation.
The Budget 2027 Spending Behind the Call
Operating expenditure is set at RM376.8bn and development expenditure at RM83bn, with the fiscal deficit targeted at 3.3% of GDP. Malacca Securities Research projects GDP growth of 4.2% to 5.2% in 2027, against a revised 4.8% to 5.3% for 2026.
For construction-linked demand, the research house points to the RM510bn expenditure and investment framework. It includes RM25bn in GLIC investments, RM11bn in public-private investments and RM14.2bn from statutory bodies and MKD companies, while Sabah (RM18.7bn) and Sarawak (RM16.2bn) receive East Malaysia allocations for regional infrastructure.
Valuation Basis and Financial Numbers
The research house’s summary does not disclose AWC Berhad’s revenue, earnings or the valuation method behind the RM0.80 target price. Readers who need those inputs will have to consult the full report from M+ Online.
The wider market backdrop is also part of the call. Malacca Securities Research notes that the FBM KLCI has recorded positive December returns in over 85% of the past 25 years, averaging nearly 2%, and that the benchmark is trading near oversold territory.
Risks Flagged by the Research House
The research house warns that higher wages could pressure labour-intensive businesses with limited pricing power. It also cites surging US Treasury yields and uncertainty over the FBM KLCI’s expansion from 30 to 50 constituents as drags on the market over the past month.
On the other side, Malacca Securities Research sees limited risk of heavy post-Budget profit-taking, given the correction already seen in the past month. The house says bond yield stabilisation would help a year-end recovery.
What This Means for Retail Investors
The BUY call and RM0.80 target are Malacca Securities’ own views, and the report is one research house’s framework rather than a guide for any individual portfolio. Retail readers can use the Budget figures as a checklist, comparing a construction name’s order book and earnings against the spending the research house describes. The full report is available from M+ Online at mplusonline.com.
Key Takeaways
- Malacca Securities Research maintains a BUY call on AWC Berhad with a RM0.80 target price within its Budget 2027 construction theme.
- The research house cites a RM510bn expenditure and investment framework as the main spending backdrop.
- Operating expenditure of RM376.8bn and a fiscal deficit target of 3.3% of GDP frame the 2027 outlook.
- The summary reviewed does not include AWC Berhad’s earnings or valuation method.
- Higher wages, US Treasury yields and FBM KLCI index uncertainty are the risks flagged by the house.
Frequently Asked Questions
What is Malacca Securities’ call on AWC Berhad?
Malacca Securities Research maintains a BUY call on AWC Berhad with a target price of RM0.80. The call sits within the research house’s wider Budget 2027 beneficiary list for construction and engineering.
Which Budget 2027 figures does the research house cite for construction?
The research house points to the RM510bn expenditure and investment framework, including RM25bn in GLIC investments and RM11bn in public-private investments. It also cites Sabah at RM18.7bn and Sarawak at RM16.2bn as East Malaysia allocations supporting infrastructure.
Does the report include AWC Berhad’s financial figures?
The summary reviewed does not include AWC Berhad’s revenue, earnings or valuation method. Malacca Securities Research’s full report, available from M+ Online, is the place to check those inputs.
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 10 October 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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