Econpile hits fresh all-time high as FY17 net profit rises 20%

KUALA LUMPUR (Aug 24): Econpile Holdings Bhd’s share price hit a fresh all-time high yesterday, after it announced a 20% rise in net profit for the financial year ended June 30, 2017 (FY17).

The counter touched a high of RM3.03 before settling at RM3 on market close, giving it a market capitalisation of RM1.59 billion. Year to date, the stock has climbed about 64%. On a 12-month basis, it’s up about 107%.

In a Bursa Malaysia filing, Econpile said its net profit for the fourth quarter ended June 30, 2017 grew 12% to RM20.86 million from RM18.58 million a year ago, as revenue grew 23% to RM157.68 million from RM128.35 million.

This brings its full-year net profit for FY17 to RM80.77 million, a 20% jump from RM67.54 million last year, despite a slight erosion in gross profit margin to 22.4% from 23.9%. Cumulative revenue rose 26% year-on-year to RM581.91 million from RM462.06 million.

Econpile said its piling and foundation services business segment was the main revenue contributor for the year — and that 91.5% of the projects within the segment came from property developments, with the remainder being infrastructure projects.

Going forward, the company is confident that its FY18 performance would be “sustainable” and expects to see continued growth on its piling and foundation services in the infrastructure segment.

This article first appeared in The Edge Financial Daily, on Aug 24, 2017.

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