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.
