Econpile up 6% after bagging piling contract in Putrajaya

-A +A

KUALA LUMPUR (March 11): Shares in Econpile Holdings Bhd gained as much as 6.3% to 50.5 sen in active trade today, as investors were hopeful that the latest contract it secured — a RM68.8 million piling contract in Putrajaya — could positively contribute to the group's earnings this year.

The stock was one of Bursa Malaysia's top ten active stocks this morning with a turnover of 18.90 million shares as at 11.03am. The counter was traded at 48.5 sen, still up 2.11% or one sen from its last price, at the time of writing.

Econpile, which recently reported its first quarterly loss since listing, said last Friday that its wholly-owned unit Econpile (M) Sdn Bhd secured the 18-month job from Niaz Enterprises (M) Sdn Bhd involving piling, pilecap and basement works for the Terra Putrajaya Project in Precinct 3, Putrajaya.

The Terra Putrajaya Project is a mixed-use development that includes a shopping mall, serviced apartments, and facilities such as a basement and elevated parking.

This brings the group's current order book to RM950 million, which its chief executive officer Raymond Pang said could provide earnings visibility over the next two years.

Meanwhile, other construction-related stocks listed on the local bourse were up this morning, including Sarawak-based Cahya Mata Sarawak Bhd (CMSB) and KKB Engineering Bhd, as the Sarawak government is expected to award contract packages for the RM5 billion coastal highway, RM6 billion second trunk road and RM8 billion water grid phase 1 in the first half of this year.

Shares in CMSB rose 7.2% to its RM3.41, making it amongst top gainers on the stock exchange this morning, while KKB Engineering gained two sen or 1.7% to RM1.20. Hock Seng Lee Bhd, on the other hand, is unchanged at RM1.44.