New High-Rise Foundation Job Boosts Earnings Visibility Through 2028
KUALA LUMPUR (June 26) — Piling and foundation specialist Econpile Holdings Bhd has secured a RM48.8 million contract for foundation works at a 74-storey serviced apartment development along Jalan Pavilion in Kuala Lumpur.
The contract award further strengthens the group’s project pipeline and supports its earnings visibility over the medium term, particularly as demand for high-rise residential and mixed-use developments remains active in key urban areas.
Scope of Works for Major High-Rise Project
The contract was awarded to Econpile’s wholly owned subsidiary, Econpile (M) Sdn Bhd, by Vestland Infra Sdn Bhd, a unit of Vestland Bhd.
The scope of work includes bored piling and foundation engineering services for a single tower development comprising:
Basement structures
Integrated car parks
Retail shop lots
Ancillary facilities
The project is expected to take approximately 16 months, with site mobilisation beginning on July 7 and completion targeted for November 2027.
Strong Contract Replenishment Momentum
With this latest award, Econpile’s total new contract wins for the financial year ending June 30, 2026 (FY2026) have reached RM404 million.
The group’s outstanding order book now stands at more than RM500 million, providing earnings visibility through FY2028.
Management indicated that the project is expected to contribute positively to revenue and earnings starting from FY2027, once construction activities progress into revenue recognition stages.
Ongoing Project Pipeline Remains Active
Econpile currently has 25 active projects across Malaysia, with a strong concentration in the Klang Valley and Penang.
Key ongoing projects include:
Two Penang Light Rail Transit (LRT) packages worth RM96.8 million
An industrial project in Klang, Selangor valued at RM98.2 million
These projects reflect the group’s diversified exposure across infrastructure, industrial and high-rise construction segments.
Industry Outlook and Strategic Positioning
Management remains cautiously optimistic about future contract replenishment, citing continued demand for high-rise residential developments, major infrastructure works and industrial expansion.
The company also highlighted its strong balance sheet and decades of technical expertise as key strengths that allow it to navigate challenging market conditions and maintain operational stability.
Market Performance Context
Despite the latest contract win, Econpile’s shares closed unchanged at 11.5 sen, giving the company a market capitalisation of approximately RM163 million.
The stock has experienced significant volatility this year, reflecting broader sentiment pressures in the construction sector despite steady order book replenishment.
Key Takeaways
New RM48.8 Million Contract Secured
Econpile won a foundation job for a 74-storey serviced apartment project in Kuala Lumpur.
Strong Order Book Visibility
Total order book exceeds RM500 million, supporting earnings visibility through FY2028.
Steady FY2026 Contract Wins
New contract awards reached RM404 million year-to-date, indicating consistent replenishment momentum.
High-Rise Sector Remains Key Driver
Demand for urban high-rise residential projects continues to support piling and foundation works.
Diversified Ongoing Projects
Active exposure across infrastructure (LRT), industrial, and residential construction segments.
Earnings Contribution From FY2027
The new project is expected to begin contributing to revenue from FY2027 onwards.
Challenging Market but Resilient Positioning
Despite market headwinds, the company maintains optimism due to its experience and financial stability.
Stock Weakness Contrasts Operational Stability
Share price performance remains weak despite a relatively strong order book and ongoing contract wins.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 26 Jun 26
Malaysia