Broker: CGS International Securities
Date of Report: April 3, 2026
Excerpt from CGS International Securities report.
Report Summary
- Stock: Econpile Holdings Bhd (ECON MK)
- Action: Add (Buy)
- Target Price (TP): RM0.24 (reduced from RM0.39)
- Current Price: RM0.115
- Upside: 108.7%
- Key Idea: The stock is seen as grossly oversold and trading at historical lows (0.4x FY26F P/BV), despite challenging times from rising raw material costs (diesel and concrete) affecting margins. Econpile is mitigating risks through negotiations and aims to incorporate cost-sharing clauses in new contracts. The company maintains a strong balance sheet and robust cash flows, and is targeting more infrastructure projects to cushion cost pressures.
- Highlights:
- FY26F/FY27F/FY28F EPS cut by 40%/58%/46% due to lower margins and reduced new order wins assumptions.
- Key catalysts for re-rating include new project signings (e.g., Sungai Klang Link), rollout of mega infrastructure projects, and easing raw material costs.
- Main downside risks: Delays in mega projects and continued high raw material costs.
Ticker: ECON MK
above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website : https://www.cgs-cimb.com
