Econpile Holdings Bhd has secured a new construction sub-contract valued at RM24 million, strengthening its order book and reinforcing its presence in Selangor’s active development market.
The contract was awarded to its wholly owned subsidiary, Econpile (M) Sdn Bhd, by Al-Ambia Sdn Bhd. The scope of work covers earthworks, bored piling, pile caps, and reinforced concrete retaining walls for an 18-storey residential apartment project in Gombak, Selangor. The development is part of ongoing construction activity within the Greater Kuala Lumpur area, where demand for supporting infrastructure and foundation works remains steady.
The project is expected to make a positive contribution to the group’s revenue and earnings starting from the financial year ending June 30, 2026. Developments in areas such as Gombak, Subang, and other Selangor townships continue to support demand for specialist contractors, particularly for projects located near established commercial and industrial corridors.
Construction Activity Supported by KL–Selangor Property Demand
Selangor remains a key growth market for industrial land, commercial property, and supporting residential developments, driven by spillover demand from Kuala Lumpur. Areas with strong connectivity—similar to Subang and Puchong—have seen consistent construction activity, benefiting contractors involved in foundation and sub-structure works for factories, warehouses, office buildings, and high-density developments.
According to market data, Econpile’s trailing twelve-month earnings before interest, tax, depreciation, and amortisation margin stands at approximately 5.3%, while its return on equity is around 0.6%, reflecting the competitive nature of the construction sector.
Market Performance
Despite securing new contracts, Econpile’s share price has faced pressure over the past year. The stock has declined about 42% year-on-year, closing at 24.5 sen, giving the group a market capitalisation of approximately RM340.6 million.
With ongoing development activity across Selangor and Kuala Lumpur—particularly involving industrial property, commercial developments, and mixed-use projects—the group remains positioned to benefit from future construction opportunities tied to industrial land in Selangor and commercial property growth within the Klang Valley.
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