PETALING JAYA: Piling specialist Econpile Holdings Bhd
is expected to beat its new job wins target of RM400mil for its financial year ending June 30, 2026 (FY26) with the rollout of more government infrastructure, data centre, and industrial building projects, analysts say.
Barely two weeks into its new financial year, analysts said the group is off to a good start with its second job win, a RM98.2mil contract from Eastmont Sdn Bhd to undertake bored piling works, basement construction and pile cap works within a proposed industrial development in Kapar, Klang.
CGS International Research (CGSI Research) said in a report that with the new job, Econpile’s FY26 new wins already total RM125mil, which is 31% of its target of RM400mil, bringing its order book to RM580mil as of last month.
“This is assuming revenue recognition of RM90mil in the fourth quarter of its FY25 (4Q25).”
The gross profit margin for the latest project, which is estimated at 10%, is similar to Econpile’s existing piling residential projects, the research house noted.
On July 9, Econpile also announced a RM27mil piling and pile cap works contract from Bayu Melati Sdn Bhd for a proposed serviced apartment project with two 37-storey blocks in Selangor.
CGSI Research said, “More importantly, we believe the group’s projects have no more lingering legacy issues.”
Earlier this year, Econpile had faced some issues with a project in Mont Kiara, Kuala Lumpur, and road upgrading work in Pahang, which have since been gradually resolved.
“As such, we expect earnings to show some recovery in 4Q25, and then become more apparent in FY26 when recognition of most of its projects picks up steam,” the research house noted.
CGSI Research reiterated an “add” call on the stock with a target price of 46 sen per share.
“We like Econpile as a key beneficiary of a revival in government infrastructure spending as, according to the company, it has the largest number of bored pile machines in Malaysia currently.”
Meanwhile, RHB Research said in a note to clients, “Given that the majority of Econpile’s contracts pertain to property development, the latest win indicates the group’s comeback in the industrial space.”
The research house estimated the group’s current order book at RM570mil, while FY26 year-to-date job wins stand at RM125mil versus its full-year job win target of RM600mil.
The group’s tender book stands at about RM1bil, comprising jobs in both the private and public sectors.
“Profitability-wise, we expect the gross profit margin for this latest job to be between 5% and 8%,” it noted.
RHB Research, which maintained a “buy” call on Econpile, set a new target price of 48 sen per share.
The research house added that the icing on the cake would come from the group’s securing newer packages from infrastructure jobs with higher margins such as the Penang Light Rail Transit or the upcoming Johor Baru Elevated Autonomous Rapid Transit projects.
The research house is also upbeat about the group’s track record in infrastructure jobs compared with other piling contractors.
