Latest news with #EconpileHoldingsBhd
New Straits Times
15-07-2025
- Business
- New Straits Times
Econpile set for earnings surge after clearing project backlog
KUALA LUMPUR: With legacy projects now behind it and RM580 million worth of jobs in hand, Econpile Holdings Bhd is setting the stage for a sharper earnings recovery, according to CGS International. The research house said this marks a turnaround that could drive a surge of more than 600 per cent in core earnings per share (EPS) in the current financial year. CGS maintained its "Add" rating on the construction and piling specialist with a target price of 46 sen, representing a 21 per cent upside from its current price of 38 sen. "Econpile's orderbook is now free of lingering legacy issues, which should lead to better earnings and margin recovery as new projects kick in," it said in a research note. The company had previously encountered setbacks in several projects, including the Face 3 development, a Mont Kiara job and road upgrading works in Pahang. CGS noted that these issues have since been resolved. With legacy projects cleared, Econpile is expected to rebound from a net loss of RM25.2 million in FY25 to a net profit of RM21.6 million in FY26 and further to RM45.6 million in FY27, supported by stronger revenue recognition and more consistent project execution. This translates into core EPS growth of 652 per cent in FY26, followed by a further 111 per cent in FY27. Just two weeks into the new financial year that began on July 1, Econpile has already secured RM125 million worth of new jobs, or 31 per cent of its FY26 target of RM400 million. This includes a RM98.2 million contract for bored piling and basement works for Malaysia Milk's plant extension in Kapar, Klang, awarded by Eastmont Sdn Bhd and a RM27 million job for two serviced apartment blocks in Selangor. CGS expects more job wins ahead, supported by the rollout of government infrastructure, data centre and industrial building projects. It sees Econpile as a prime beneficiary, given its ownership of the largest fleet of bored pile rigs in Malaysia. "Key re-rating catalysts include the crystallisation of Econpile's memorandum of understanding for the Sungai Klang Link project, which could pave the way for RM1.4 billion worth of piling contracts," it said. Downside risks include potential delays in the rollout of large-scale infrastructure jobs and higher raw material costs, which could affect margins and order flows. With legacy issues resolved and strong job momentum early in the year, CGS said Econpile is well-positioned to deliver stronger results moving forward.
New Straits Times
14-07-2025
- Business
- New Straits Times
Econpile order book tops RM570mil, first above RM500mil since FY22
KUALA LUMPUR: Econpile Holdings Bhd's outstanding order book is currently estimated at around RM570 million, with new contract wins for the financial year 2026 (FY26) to date totaling RM125 million. 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.
New Straits Times
11-07-2025
- Business
- New Straits Times
Econpile secures RM98.2 mln construction project in Klang
KUALA LUMPUR: Econpile Holdings Bhd's (Econpile Holdings) wholly-owned subsidiary, Econpile (M) Sdn Bhd, has secured a RM98.2 million construction contract from Eastmont Sdn Bhd for a proposed industrial development in Klang, Selangor. It said the award entails bored piling works for blocks C and D and basement construction for block C, including pile cap works for block D for the proposed project. "The project shall be completed within 13 months from July 30, 2025 and is expected to contribute positively to the revenue and earnings of the company from the financial year ending June 30, 2026 onwards," Econpile Holdings said in a filing with Bursa Malaysia today. It said that there are no foreseeable significant risks other than operational risk associated with the project during the contract period. "The management would put in place control measures and operational procedures to reduce the impact or likelihood of such events," it added.
The Star
11-07-2025
- Business
- The Star
Econpile wins RM98.2mil contract for industrial project in Klang
PETALING JAYA: Econpile Holdings Bhd has secured a RM98.2mil contract Eastmont Sdn Bhd to undertake bored piling and related works for a proposed industrial development in Klang, Selangor. In a filing with Bursa Malaysia, Econpile noted its wholly owned subsidiary, Econpile (M) Sdn Bhd, received the letter of award on July 10, 2025. The project involves bored piling works for Blocks C and D, construction of a basement for Block C, and pile cap works for Block D of the proposed industrial development in Sungai Kapar Indah in Klang, Selangor. The contract is scheduled to be completed within 13 months from July 30, 2025. Econpile said the project is expected to contribute positively to the group's revenue and earnings from the financial year ending June 30, 2026 onwards.
The Star
09-07-2025
- Business
- The Star
Econpile wins RM27mil construction job
PETALING JAYA: Econpile Holdings Bhd has received a letter of award from Bayu Melati Sdn Bhd to undertake piling and pile cap works for two 37-storey serviced apartment blocks (1,155 units) in Petaling Jaya, Selangor, worth RM27mil. In a filing with Bursa Malaysia, the construction company said the project shall be completed within 12 months from July 14, 2025. 'The project is expected to contribute positively to the revenue and earnings of the company from the financial year ending June 30, 2026 onwards.' Econpile said there are no foreseeable significant risks other than operational risk associated with the project during the contract period. 'The management would put in place control measures and operational procedures to reduce the impact or likelihood of such events.' Last week, the company announced it had bagged two separate contracts from LFE Engineering Sdn Bhd and LFE Innovative Sdn Bhd for a combined sum of RM57.95mil.
