KUALA LUMPUR (Nov 16): Inter-Pacific Research has initiated coverage on AWC Bhd with a target price of RM1 based on sum of parts valuation. 

In a note today, the research house said it likes AWC for its 1) Earnings visibility 2) an attractive PER valuation of 9.4x FY18 earnings   3) Well diversified earnings base. 

“We are of the view that the company deserves richer valuation due to its earnings visibility and sustainability.

“This stands out sharp against the current backdrop of a poor economic environment with dwindling earnings,” it said.