AWC share still dampen due to negative surprise in previous Q4 result, which in turn due to several one off Goodwill provision and deferred tax.
However, once these one off non recurring is over, AWC earning should be normalize record in upcoming Q result. Expected AWC to record higher Q1 result due to several new contract secure + concession earning, EPS >2sen.
Now already entering earning session, so, be patient, awaiting for Q3 result to determine stock direction. Good fundamental will purview, AWC concession oriental profit is due for re-rating to higher valuation.
Despite PAT increasing by almost 10% YoY, EPS only up by 1.3% YoY due to too many ESOS and Shares issued for acquisition of Trackworks. Unless these business start to deliver better results, the dilution in EPS will be even more in the coming quarters.
This stock is severely undervalued. It's stock fell in last few months due to poor Q4FY19 EPS which was caused by many one-off losses. If I exclude last quarter's one-off loss, AWC is currently selling at ~7x PE multiple. This is low for a net cash and consistently profitable company. Its fair value is at least 94sen per share, and from current 62sen per share, the upside is ~50%. If AWC's stock price does not rebound tomorrow, blame the market sentiment and irrationality of Mr. market. It is a no brainer at this price level. I have accumulated enough in past few months.
Engineering services group AWC Bhd has bagged a RM113 million job to provide hospital support services for the National Cancer Institute.
Under the terms of the three-year contract, the scope of works to be undertaken by AWC will be to provide all engineering, cleaning, healthcare waste, linen, and laundry management services for the cancer institute in Putrajaya, the group said in a filing with the local bourse.
The contract that will start from Sept 1, 2019, to last till Aug 31, 2022, was secured by AWC's wholly-owned unit Ambang Wira Sdn Bhd from the Ministry of Health.
KAB PE 60x, WIDAD PE 60x , AWC PE 8x, Yes 8x!!! Market is a non sensible place. AWC orderbook >RM1 Billion. Company just paid dividend and owner bought more shares with almost his entire dividend portion. AWC is a no brainer at this level.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
hng33
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Posted by hng33 > 2019-11-20 12:24 | Report Abuse
AWC share still dampen due to negative surprise in previous Q4 result, which in turn due to several one off Goodwill provision and deferred tax.
However, once these one off non recurring is over, AWC earning should be normalize record in upcoming Q result. Expected AWC to record higher Q1 result due to several new contract secure + concession earning, EPS >2sen.