Econpile order book tops RM570mil, first above RM500mil since FY22
In a note, RHB Investment Bank Bhd (RHB Research) highlighted that this marks the first time Econpile's order book has exceeded the RM500 million level since the third quarter of FY22, when it stood at RM550 million at the end of the first quarter of that year.
"The group's tenderbook stands at approximately RM1 billion, comprising private and public sector jobs.
"Potential rerating catalysts include faster-than-expected approval for the Sungai Klang Link project (worth RM300-RM500 million for piling works).
"Profitability-wise, we expect gross profit margins for this latest job to be between five and eight per cent," it added.
Meanwhile, RHB Research also highlighted that Econpile has announced its second job win for FY26 and its third win within a two-week timeframe.
The group secured a RM98 million contract from Eastmont to undertake bored piling works for Blocks C and D, basement construction for Block C, and pile cap works for Block D within a proposed industrial development in Kapar, Klang.
This is Econpile's largest contract win since October 2023.
RHB Research said given that the majority of Econpile's contracts pertain to property development works, the latest win indicates the group's comeback in the industrial space.
"The said project is expected to be completed within 13 months from July.
"The last time Econpile clinched a job related to an industrial building was in April 2022, which was a RM23 million contract from CJ Synergy Solutions for a five-storey industrial building in Section 20, Petaling Jaya," it noted.
Overall, RHB Research has maintained a "Buy" call on Econpile, with a higher target price of 48 sen from 42 sen previously.
It remains positive on the group's track record in infrastructure jobs compared to other piling contractors.
The firm also made no changes to the group's earnings estimates, as the latest win is within its FY26 job replenishment target.
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