Latest news with #Econpile
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
Econpile bags RM42.8mil piling contract for Penang LRT
Econpile Sdn Bhd will carry out bored piling and related construction works for the Penang LRT project. KUALA LUMPUR : Econpile Holdings Bhd's wholly-owned subsidiary Econpile Sdn Bhd has secured a RM42.82 million contract from Irama Duta Sdn Bhd to carry out bored piling and related construction works for the Penang LRT project. In a filing with Bursa, the company said the works are part of the Penang Mutiara Line's Package CMC1. 'The project is expected to contribute positively to the company's revenue and earnings from the financial year ending June 30, 2026, onwards,' it said. It added that the project is expected to commence on Aug 1, 2025 and be completed by Oct 31, 2027. 'There are no foreseeable significant risks other than operational risks associated with the project during the contract period. 'The management will put in place control measures and operational procedures to reduce the impact or likelihood of such events,' it added.
The Star
4 days ago
- Business
- The Star
Econpile set for new job wins on Penang LRT catalyst
File: Artist impression of Penang LRT Mutiara Line. PETALING JAYA: Econpile Holdings Bhd , which has secured its first contract for the Penang light rail transit (LRT) Mutiara Line, is poised to win more jobs as the RM10bil project gains momentum, analysts say. On June 5, Econpile announced it was awarded a RM42.8mil bored piling sub-package spanning three stations – from East Jelutong to Gelugor – out of the total 21 stations. The works are scheduled to begin on Aug 1, 2025 and end on Oct 31, 2027. CGS International (CGSI) Research said the win validated its view that the Penang LRT is progressing as planned, with full-scale construction expected to begin in the fourth quarter of 2025 (4Q25). 'For the broader construction sector, we think this win validates our thesis that the Penang LRT Mutiara Line is progressing as planned and construction works should be in full swing in 4Q25. 'This is likely to benefit Gamuda Bhd , as we expect it to be contracted for more work for the Penang LRT, amounting to an additional RM3bil on top of its initial contract value of RM5bil,' it said. Other potential beneficiaries include Malayan Cement Bhd , HSS Engineers Bhd , IJM Corp Bhd and Sunway Construction Group Bhd . CGSI Research said Econpile's year-to-date new order wins now total RM333mil, with an order book of RM487mil as at June 2025. The group is aiming for RM400mil to RM450mil in new jobs for its financial year ending Dec 31, 2025 (FY25), in line with last year's performance. 'We expect gross profit margins for the Penang LRT bored piling contract to be about 10%-15%, higher than the recent piling projects for property development it won over the past one year,' it said, adding that Econpile's performance should improve in 4Q25. CGSI Research maintained its 'add' rating and 46 sen target price, citing Econpile's strong presence in infrastructure projects and the largest fleet of bored piles in Malaysia. Meanwhile, CIMB Securities Research said the sub-package forms part of the larger package for which the Gamuda-led SRS Consortium Sdn Bhd – comprising Gamuda (60%), Ideal Property Development Sdn Bhd (20%) and Loh Phoy Yen Holdings Sdn Bhd (20%) – is the principal civil works contractor. Mass Rapid Transit Corp Sdn Bhd is the project developer and asset owner of the Mutiara Line. 'Having secured the first major piling contract under the Penang LRT Mutiara line, the group is well-placed to bid for a larger piling-related job that is coming up,' CIMB Research said. It kept its 'buy' rating and 38 sen target price, pegging the stock at 19 times 2026 core earnings per share of 1.9 sen.
New Straits Times
7 days ago
- Business
- New Straits Times
Re-rating for Econpile on Klang Link boost, meets 2025 target
KUALA LUMPUR: RHB Investment Bank Bhd (RHB Research) sees potential rerating catalysts for Econpile Holdings Bhd, driven by the prospect of faster-than-expected approval for the Sungai Klang Link project, which could contribute RM300 million to RM500 million worth of piling work. In a research note, the firm highlighted that Econpile's year-to-date (YTD) contract wins for the financial year ending 2025 (FY 2025) have already reached RM300 million, meeting RHB's full-year target ahead of time. Its latest contract marks the eighth award for FY 2025, which is a RM42.8 million subcontract from Irama Duta Sdn Bhd to carry out bored piling works for the Penang Light Rail Transit (LRT) project, covering the stretch from East Jelutong to Gelugor. Work is expected to commence in August 2025 and conclude by October 2027. With this award, Econpile's outstanding order book has grown to about RM480 million. This includes jobs for condominium piling, bridge works, and mixed-use commercial developments. Meanwhile, the company's tender book is valued at around RM1 billion, comprising opportunities from both public and private sectors. RHB Research estimates the gross profit margin for the new LRT job to range between 5 per cent and 8 per cent. Notably, prior to securing this subcontract, Econpile had already been involved in test piling for segment 1 of the Penang LRT. "Based on our observation, the stretch between the East Jelutong and Gelugor stations is around 5km against the full estimated 24km length of segment 1 of the Penang LRT. "This suggests there could be five piling packages in total, assuming each package covers about 5km. Hence, we do not discount the possibility of more piling awards taking place in the future," it added. Following the new contract, RHB Research kept its earnings estimate, as the amount is within its FY 2025 job replenishment target. The firm maintained its "buy" call on Econpile with an unchanged target price of 42 sen a share, derived by pegging forecast earnings per share for FY 2026 to a target price-to-book value (P/BV) multiple of 1.9 times. "While our FY 2026-2027 earnings reflect growth versus the core losses incurred during FY 2022-2024, our projections have yet to match the levels seen in FY 2018, when core earnings were at RM87 million. This warrants us continuing to use P/BV to value the stock," it said.
The Star
29-05-2025
- Business
- The Star
Econpile wins RM40mil bridge construction job
PETALING JAYA: Econpile Holdings Bhd has accepted a letter of arrangement from Ahmad Zaki Sdn Bhd to undertake the construction of a bridge at Kampung Binjai Kuala Lipis, Pahang, worth RM40.11mil. In a filing with Bursa Malaysia, the construction firm said the project shall be completed by Nov 20, 2027. 'The project is expected to contribute positively to the revenue and earnings of the company from the financial year ending June 30, 2025 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.' For the third quarter ended March 31, 2025, Econpile reported a lower net loss of RM202,000 compared with a net loss of RM2.76mil in the previous corresponding period, while revenue dropped to RM60.28mil from RM99.01mil a year earlier.
Yahoo
26-05-2025
- Business
- Yahoo
Shareholders in Econpile Holdings Berhad (KLSE:ECONBHD) are in the red if they invested five years ago
Statistically speaking, long term investing is a profitable endeavour. But that doesn't mean long term investors can avoid big losses. Zooming in on an example, the Econpile Holdings Berhad (KLSE:ECONBHD) share price dropped 52% in the last half decade. That's not a lot of fun for true believers. And we doubt long term believers are the only worried holders, since the stock price has declined 41% over the last twelve months. Furthermore, it's down 12% in about a quarter. That's not much fun for holders. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. We've discovered 1 warning sign about Econpile Holdings Berhad. View them for free. Econpile Holdings Berhad isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. Over half a decade Econpile Holdings Berhad reduced its trailing twelve month revenue by 3.9% for each year. While far from catastrophic that is not good. With neither profit nor revenue growth, the loss of 9% per year doesn't really surprise us. We don't think anyone is rushing to buy this stock. Not that many investors like to invest in companies that are losing money and not growing revenue. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. You can see what analysts are predicting for Econpile Holdings Berhad in this interactive graph of future profit estimates. We regret to report that Econpile Holdings Berhad shareholders are down 41% for the year. Unfortunately, that's worse than the broader market decline of 6.0%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Econpile Holdings Berhad is showing 1 warning sign in our investment analysis , you should know about... If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
