AWC Berhad has added a RM39.7m data centre job to its engineering pipeline, and Malacca Securities Research says the win pushes the Engineering Division’s pro-forma order book to roughly RM202.0m.
AWC Berhad’s Latest Data Centre Contract
On 14 October 2026, wholly-owned subsidiary Qudotech Sdn Bhd signed a subcontract with Gamuda Engineering Sdn Bhd for a hyperscale data centre at Bandar Springhill, Port Dickson, Negeri Sembilan. The scope covers cold water, rainwater harvesting, water reticulation, fire hydrant and sanitary services, including supply, installation, testing and commissioning.
The research house noted that this is the fourth data centre win for the Engineering Division in the past 12 months, lifting the aggregate value of those contracts to RM127.3m. Gamuda is a repeat customer, following a RM23.1m subcontract Qudotech secured from the same party in August 2026.
According to Malacca Securities Research, the contract is expected to contribute positively to the Group’s FY27 earnings until the project is completed.
Order Book and Financial Impact
The research house projects the Engineering Division’s pro-forma order book will climb to about RM202.0m, up from RM139.2m reported as at June 2026. The jump reflects two recent data centre jobs totalling RM62.8m, comprising the August award and this latest RM39.7m win.
At Group level, AWC Berhad‘s pro-forma order book expands to about RM887.1m, according to the research note. Malacca Securities says the contract falls within its order book replenishment assumptions for the Engineering Division, so its core PAT forecasts for FY27f to FY29f remain unchanged.
Valuation Basis Behind the RM0.80 Target
Malacca Securities maintains its BUY rating with a target price of RM0.80, which the research house has not revised. The target is based on a P/E multiple of 12.0x, applied to its mid-FY28f fully diluted EPS of 6.69 sen.
The research house said the latest win further strengthens earnings visibility from the engineering business. In its view, the contract also validates the order book replenishment assumptions that underpin the valuation.
Risks Flagged by the Research House
Malacca Securities identified two downside risks to its recommendation. The first is a failure to renew the government’s concession contract, which the research note treats as a material factor for the outlook.
The second is continued delays in Middle East project progress. The research house did not quantify either risk in the summary, leaving investors to weigh them against the order book momentum.
What This Means for Retail Investors
A RM39.7m subcontract is a fraction of the Group’s RM887.1m pro-forma order book, so the bigger question is how smoothly these jobs convert into revenue. The research house’s view rests on execution, so repeat business with Gamuda is a useful signal to track in future filings.
Retail investors can read the full report for the detailed assumptions behind the forecasts, which is available from M+ Online at mplusonline.com/research-report/detail/1468. The views in this article are those of Malacca Securities Research, and the decision on whether any position suits your circumstances rests with you.
Key Takeaways
- Malacca Securities maintains a BUY call on AWC Berhad with a target price of RM0.80.
- Qudotech’s RM39.7m subcontract from Gamuda is the fourth data centre win in 12 months, totalling RM127.3m.
- The Engineering Division’s pro-forma order book rises to about RM202.0m, up from RM139.2m in June 2026.
- Group pro-forma order book reaches about RM887.1m, according to the research house.
- Risks include failure to renew a government concession and delays in Middle East projects.
Frequently Asked Questions
What is the target price for AWC Berhad?
Malacca Securities maintains a BUY call on AWC Berhad with a target price of RM0.80. The target is based on a 12.0x P/E applied to mid-FY28f fully diluted EPS of 6.69 sen.
How big is AWC Berhad’s latest data centre contract?
The latest contract is worth RM39.7m, a subcontract signed by Qudotech Sdn Bhd with Gamuda Engineering on 14 October 2026. According to Malacca Securities Research, it is the fourth data centre win for the Engineering Division in 12 months.
What is AWC Berhad’s order book after this win?
The research house projects the Engineering Division’s pro-forma order book at about RM202.0m, up from RM139.2m as at June 2026. At Group level, the pro-forma order book is about RM887.1m.
What risks did Malacca Securities flag for AWC Berhad?
Malacca Securities cited a possible failure to renew the government’s concession contract as a key downside risk. It also flagged continued delays in Middle East project progress as a risk to its BUY recommendation.
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Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 15 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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