Econpile to benefit from upcoming infra projects

Source: The Star

PETALING JAYA: Econpile Holdings Bhd's outlook appears bullish, underpinned by upcoming mega-infra and urban redevelopment projects which will require the skills of piling contractors, says CGS International Research.

The research house said Econpile's potential margin expansion is on track as demand picks up and raw material prices stabilise.

Apart from the group's robust order book replenishment prospects, it said the positioning of the piling company in the construction value chain is also an advantage."Econpile remains an underappreciated infrastructure proxy with its upcoming prospects, as the majority of Bloomberg consensus has 'hold' or 'sell' calls

"We think the market underestimates the benefits of the company operating in a less crowded piling market, its ability to secure new projects, and profit expansion from higher-margin jobs," said the research house in a report yesterday.