• Business profile. AWC Berhad is a premier provider of total asset management and provides "one stop" integrated facilities management services to building facilities owners. The Company is the only IFM provider in Malaysia with nationwide coverage. The group’s automated was te collection s ys tem is als o a big part of its businesses; they are one of the top 3 companies in the world offering this service. These services contribute about 80% - 90% of its revenue.
• Big potential market. The current trends in the facilities management industry are still at a very nascent stage. Many organizations are still not familiar with facilities management, which provides an opportunity for AWC to penetrate the market as a pioneer. Many buildings are already more than 30 years old that may catalyze the future demand for facilities management services .
• On technical perspective, since share price penetrated above critical resistance of RM0.435 amid high volume, buying interest in AWC remains strong in short-term period. Readings from MACD, RSI and Slow Stochastics show that sentiment is still hovering in the bullish territory. As such, we expect share price to trend higher towards RM0.465-0.495, with a long-term objective of RM0.525. Immediate support at RM0.435 and RM0.425. Cut loss at RM0.415 (10-d SMA).
• Attractive risk to reward ratio with 19% upside against 5.7% downside. We see a good risk to reward ratio for investor with a theoretical entry price of RM0.44 given that the downside to the cut loss zone of RM0.415 is 2.5 sen (- 5.7%) while the upside to the LT target of RM0.525 is 8.5 sen (+19%).

Source: Hong Leong Investment Bank Research - 15 Jan 2016