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- “Overall collection has also improved significantly over the past few months."
KUALA LUMPUR (June 25): CGS International has maintained its 'add' rating for Econpile Holdings Bhd (KL:ECONBHD) at 45.5 sen, with an unchanged target price of 61 sen based on a 0.5 times calendar year 2024 (CY2024) price/earnings-to-growth ratio, implying 19.1 times CY2025 price-earnings (the pre-Covid mean of 2014 to 2018).
In a note on Monday, the research house said the company is a beneficiary of the incoming infrastructure and data centre boom.
It said that Econpile remains one of the few remaining local players capable of completing technically demanding piling jobs.
CGS International said Econpile’s order book as at March amounted to RM400 million.
It said Pavilion Damansara Heights Phase 2 podium works (RM105 million), the main legacy project which had been a drag on Econpile's gross profit margin, appears to be at the tail end (target completion: December 2024).
“Overall collection has also improved significantly over the past few months.
“Unless there is a material contract win by end-June, Econpile will end FY2024 (the financial year ending June 30, 2024) with RM432 million contract wins, including a RM40 million variation order for a Cameron Highlands road upgrade job.
“The management has not set any official target for new wins for FY2025, but believes as a base case, it can achieve a similar amount as in FY2024, without the Sungai Klang Link and acceleration in government projects,” the research house said.
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