Econpile Holdings Berhad

$ECONBHD / 5253 (ECONPILE HOLDINGS BERHAD)
Research Report by RHB

$ECONBHD / 5253 (ECONPILE HOLDINGS BERHAD)
Research Report by CGSI

PETALING JAYA: CGS International Research (CGSI Research) expects Econpile Holdings Bhd to be a key beneficiary of revival in the government’s infrastructure spending with its capabilities and fleet in bored piles.

$ECONBHD / 5253 (ECONPILE HOLDINGS BERHAD)
Research by CGSI

KUALA LUMPUR: Econpile Holdings Bhd's wholly-owned subsidiary Econpile (M) Sdn Bhd has secured a contract from WCT OUG Development Sdn Bhdto undertake bored piling, earthworks, retaining wall and sub-structure works for two 57-storey service apartment blocks in Petaling, Kuala Lumpur, for RM35.11mil.

$ECONBHD / 5253 (ECONPILE HOLDINGS BERHAD)
Research by CGSi

KUALA LUMPUR: Econpile Holdings Bhd has via its wholly-owned subsidiary Econpile (M) Sdn Bhd secured two contracts valued at a combined RM33.3mil from Sg Besi Construction Sdn Bhd for piling and substructure works.

$ECONBHD / 5253 (ECONPILE HOLDINGS BERHAD)

$ECONBHD / 5253 (ECONPILE HOLDINGS BERHAD)
Research by CGS
Add - TP RM0.61

"Earnings miss, but path to profitability soon"

■ 4QFY6/24 earnings missed expectations, due partly to impact of delays in site possession.
■ Econpile said that it is saving capacity for higher-margin projects and expects its earnings trajectory to improve in FY25F-FY26F.
■ Reiterate Add and TP of RM0.61, based on a 0.5x CY24F PEG.

Analyst:
CHONG Tjen-San, CFA
tjen-san.chong@cgsi.com

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

$ECONBHD / 5253 (ECONPILE HOLDINGS BERHAD)
Research by CGS
Add – TP of MYR 0.61

“New job awards in Malaysia to accelerate, easing competition & raising pricing power”

We reiterate Add. We believe our thesis of Econpile being a beneficiary of the incoming infrastructure and data centre boom is intact. It remains one of the few remaining local players capable of completing technically-demanding piling jobs. Our TP of RM0.61 is based on a 0.5x CY24F PEG and implies 19.1x CY25F P/E (2014-18 pre-Covid mean).

Analyst(s):
CHONG Tjen-San, CFA
tjen-san.chong@cgsi.com

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Director's Interest (Section 219 of CA 2016) - MR PANG SAR

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR PANG SAR

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

$ECONBHD / 5253 (ECONPILE HOLDINGS BERHAD)
Research by RHB
Buy – TP of MYR 0.69

“Short-Term Pain, Long-Term Opportunities; Keep BUY”

Keep BUY, new MYR0.69 TP (from MYR0.71), 36% upside. 9MFY24 (Jun) core net loss of MYR17m missed our and Street’s full-year net loss estimates of MYR16m and MYR6m due to higher-than-expected operating costs, which pressured margins of ongoing jobs. Nonetheless, we are optimistic on Econpile’s prospects to secure more projects in the next two years, including mega projects like the Sungai Klang Link elevated highway (SKL) and Mass Rapid Transit (MRT) 3, which may lead to a turnaround in FY25.

Analyst(s):
Cindy Lee
cindy.chin.hui@rhbgroup.com
Adam Bin Mohamed Rahim
adam.mohamed.rahim@rhbgroup.com

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

$ECONBHD / 5253 (ECONPILE HOLDINGS BERHAD)
Research by CGS
Add – TP of MYR 0.61

“9MFY24 miss; FY25F outlook intact”

Econpile reported a 9MFY6/24 core net loss of RM17.4m which was below expectations. FY6/24 YTD has been challenging for the company with continued margin pressures and construction cost overruns in 1H24. On a positive note, the company posted a gross profit of RM3.6m in 3Q24, and we expect losses to further narrow in the 4Q24. The company’s cash conversion cycle has also improved to 261 days (FY23: 273) YTD.

Analyst(s):
CHONG Tjen-San, CFA
tjen-san.chong@cgsi.com
Jeremy MOK
jeremy.mok@cgsi.com

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

MEMORANDUM OF UNDERSTANDINGECONPILE HOLDINGS BERHAD ("THE COMPANY") - MEMORANDUM OF UNDERSTANDING BETWEEN ECONPILE (M) SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY AND SUNGAI KLANG LINK SDN. BHD. - UPDATE

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD