• An established integrated facilities player. AWC Facility Solutions Berhad (AWC) assumed the listing status of Trans Capital Holding Bhd in Sep 03. Over the last 13 years, the group has developed into an integrated facilities management, environment solutions and engineering services player in Malaysia with a regional presence in Asia and the Middle East. As at 1H FY June 2016, the facilities management, environment solutions and engineering services contributed 51%, 27% and 22% to the group’s revenue, res pectively.
• A decisive breakout above RM0.475 will spur prices higher to RM0.51-0.58 targets. Having corrected 42% from 52-week high of RM0.495 (14 Apr 2015) to a low of RM0.285 (1 Sep 2015), AWC’s s hare prices s taged a s teady recovery to close at RM0.455 yesterday. As prices are holding up decisively well above all key 10-d/20-d30-d/50-d/100-d SMAs and uptrend line (as well as supported by gradual uptick in technical indicators), we believe AWC will break immediate resistance of RM0.475 (23 Feb high) soon and move higher towards RM0.51 (upper channel). Our long term objective is situated at RM0.58 (138.2% FR) levels. Key supports are RM0.43 (30-d SMA) and RM0.415 (50-d SMA). Cut loss at RM0.405.
• Attractive risk to reward ratio with 27.5% upside against 11% downside. All in, we see an attractive risk to reward ratio for investor with a theoretical entry price of RM0.455 given that the downside to the cut loss zone of RM0.405 is 5 sen (-11%) while the upside to the LT price objective of RM0.58 is 12.5 sen (+27.5%).

Source: Hong Leong Investment Bank Research - 2 Mar 2016