AWC Berhad has secured a RM23.1 million subcontract for a data centre project, marking its third data centre contract win in the past 12 months and strengthening the engineering division’s exposure to the fast-growing digital infrastructure segment.
CGS International said AWC’s wholly-owned subsidiary, Qudotech Sdn Bhd, has accepted the subcontract from a joint venture contractor for the execution and completion of plumbing, silo tank and internal sanitary works for the data centre project.
The contract is expected to be completed by June 2027 and contribute positively to AWC’s financial performance for FY2027.
According to CGS International, AWC’s outstanding order book stood at RM865 million as at end-March 2026, excluding the latest contract win.
The research house viewed the latest award positively, saying it reinforces AWC’s growing track record in data centre infrastructure, a segment benefiting from accelerating demand for digital infrastructure across the region.
The latest contract also underscores AWC’s increasing recognition as a partner for mission-critical projects, where contractors are required to meet stringent technical and operational requirements.
CGS International estimates that the latest contract could contribute between RM1.2 million and RM1.8 million to AWC’s earnings over the contract period, assuming a net profit margin of between 5% and 8%.
The research house maintained its earnings forecasts, noting that the contract win falls within its existing assumptions for order book replenishment in FY2027.
The latest award is expected to provide additional earnings visibility for AWC as the group continues to build its presence in data centre-related engineering works.
CGS International upgraded its recommendation on AWC to BUY from Hold, while maintaining its target price at RM0.59.
The upgrade follows a decline in AWC’s share price ahead of the company’s contract announcement, which the research house believes presents a more attractive valuation opportunity.
The RM0.59 target price is based on a price-to-earnings ratio of 10 times AWC’s FY2027 forecast fully diluted earnings per share of 5.90 sen.
CGS International said the latest data centre win supports its positive view of AWC’s engineering division and its ability to participate in the continued expansion of digital infrastructure.
The research house nevertheless noted that the latest contract was already incorporated into its order book replenishment assumptions, meaning no changes were made to its earnings forecasts.
