"Our FV is based on 13x CY18F EPS of 17.1 sen, at a slight premium to our one-year forward target PE of 10-12x for small-cap construction stocks, to reflect a relatively less competitive piling segment vis-à-vis general contracting."
The award is Econpile's second job win for FY18, which boosts its year-to-date contracts secured to Rm66mil and its outstanding order book to RM1.25bil based on the research firm's estimates.
AmInvestment Research forescasts that Econpile will secure RM 600mil worth of ne jobs annually in FY18-20F.
"We continue to like Econpile for its strong earnings visibility backed by the bright prospects of the piling/foundation segment, coupled with its sizeable order backlog which will keep it busy for the next 12-24 months," it said.
"We believe the current share price has very much reflected Econpile’s fundamentals."
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