- Econpile Holdings Bhd has secured a RM30mil job to undertake bored piling, earthworks and basement substructure works at a condominium project in Persiaran Stonor.

- The contract was awarded to its wholly-owned subsidiary, Econpile (M) Sdn Bhd, by CRCC Malaysia Bhd.

- The job is expected to take 14 months with completion in January 2016.

- This is the fifth major job that the group has secured in this fiscal year and since its listing on 30 June, 2014.

- The group has secured RM200.9mil worth of new jobs in FY15F thus far. Last year, the group secured RM522.6mil worth of new jobs. Given our conservative new job assumption of RM320mil for FY15F, there could be further upside as the group secures more jobs in the coming months.

- Recall that Econpile had secured a piling job in Lorong Stonor worth RM35.4mil in Sept.

- The group is expected to announce its 1QFY14 results on 28 Nov – the same day as its AGM. We expect the results to be similar to the previous quarters as the KVMRT jobs are still in the midst of completion.

- We expect margins to improve further in the coming quarters, as the group will be able to redeploy its machineries for more property jobs (which command higher margins compared to that of infrastructure jobs). The KVMRT jobs are scheduled for completion this month.

- Maintain BUY as Econpile will benefit from more property jobs, which require piling services, moving forward.

Source: AmeSecurities