Newsbreak

• AWC Berhad announced that its wholly-owned subsidiary, Qudotech Sdn Bhd (Qudotech), has on 14 October 2026 entered into a subcontract agreement with Gamuda Engineering Sdn Bhd (Gamuda) for the supply, delivery, installation, testing and commissioning of the cold water system, rainwater harvesting system, water reticulation, fire hydrant and sanitary services for a hyperscale data centre at Bandar Springhill, Port Dickson, Negeri Sembilan, for a subcontract sum of RM39.7m. This is the fourth data centre win for the Engineering Division in the past 12 months, bringing the aggregate value to RM127.3m. The contract is expected to contribute positively to the Group for FY27 until its completion.

M+ Global View

• We view this contract win positively, as it reinforces the track record Qudotech has built in the hyperscale data centre segment. The repeat engagement with Gamuda, following the RM23.1m subcontract secured in August 2026, underscores the execution reliability that the Engineering Division has demonstrated across successive DC projects.
• Post this award, the Engineering Division’s pro-forma order book rises to ~RM202.0m (from RM139.2m reported as at June 2026, after including the two recent DC jobs totalling RM62.8m: the RM23.1m August award and this RM39.7m win). At Group level, AWC’s order book expands to ~RM887.1m on a pro-forma basis. 

Valuation & Recommendation            

• Forecast. As this contract win falls within our order book replenishment assumptions for the Engineering division, we maintain our core PAT forecasts for FY27f–FY29f.
• Maintain BUY with TP of RM0.80. We maintain our BUY recommendation with an unchanged TP of RM0.80, based on a P/E multiple of 12.0x pegged to our mid-FY28f fully diluted EPS of 6.69 sen. The latest contract win further bolsters engineering earnings visibility and validates our order book replenishment assumptions underpinning the valuation.
• Downside risks. Risks to our recommendation include (i) failure to renew the government’s concession contract and (ii) continued delays in Middle East project progress.