Econpile Holdings Welcome To The Piling Parade; BUY

Econpile Holdings (ECON MK)

Welcome To The Piling Parade; BUY

Forecasts and Valuation

Emissions And ESG

Trend analysis

Scope 1 greenhouse gas (GHG) emissions recorded a 16% decrease compared to FY23 from the shift in operational focus from machinery-intensive works to more labour-intensive tasks – this is as demand for heavy equipment decreased. Increases in Scope 2 GHG emissions were due to higher electricity consumption.

Source: Company data, RHB

Latest ESG-Related Developments

ECON actively maintained ISO 14001:2015 Environmental Management System and monitors the quality of air, noise, water discharges, and vibration levels at selected project sites to ensure compliance with regulatory limits as well as contractual requirements.

ESG Unbundled

Overall ESG Score: 2.7 (out of 4)
Last Updated: 26 February 2025

E Score: 2.7 (GOOD)

ECON routinely conducts water quality sampling on the effluent discharged at project sites to ensure compliance with standards set by the Department of Environment. Monitoring results indicate that most parameters fall below or within limits.

S Score: 2.3 (GOOD)

The group achieved approximately 4.7m man hours without loss-time injury, and maintained zero fatalities during the financial year. All reported cases are reviewed, and measures put in place to minimise the chances of future occurrences.

G Score: 3.0 (GOOD)

50% of ECON’s board members are independent, with full disclosures on director remunerations, which includes salaries and bonuses on a named basis. The group has an external investor relations team and holds investor meetings regularly, embodying good transparency and disclosure practices.

ESG Rating History

ESG Rating has been consistently rated between 2.7 and 2.8 from Jul-23 to Jul-25.

Source: RHB

Financial Exhibits

Source: Company data, RHB

Figure 1: Railway-related packages awarded to ECON – a preferred choice by railway contractors

Source: Company data

Figure 2: ECON’s quarterly outstanding orderbook (MYRm)

Source: Penang Property Talk, MRT Corp

Figure 3: Location of Lot 114017 and Lot 60925 in Sungai Kapar Indah, Klang, i.e the location of the project awarded by Eastmont

This section contains a map. The location is described as Lot 114017 and Lot 60925 in Sungai Kapar Indah, Klang.

Source: Department of Survey & Mapping Malaysia

Recommendation Chart

Source: RHB, Bloomberg

RHB Guide to Investment Ratings

Buy: Share price may exceed 10% over the next 12 months

Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain

Neutral: Share price may fall within the range of +/- 10% over the next 12 months

Take Profit: Target price has been attained. Look to accumulate at lower levels

Sell: Share price may fall by more than 10% over the next 12 months

Not Rated: Stock is not within regular research coverage

Investment Research Disclaimers

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Malaysia

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Indonesia

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United States

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DISCLOSURE OF CONFLICTS OF INTEREST

RHB Investment Bank Berhad, its subsidiaries (including its regional offices) and associated companies, (“RHBIB Group”) form a diversified financial group, undertaking various investment banking activities which include, amongst others, underwriting, securities trading, market making and corporate finance advisory.

Save as disclosed in the following link RHB Research Conflict Disclosures Jul 2025 and to the best of our knowledge, the respective disclosures are as follows:

Malaysia

1. RHBIB does not have a financial interest in the securities or other capital market products of the subject company(ies) covered in this report.
2. RHBIB is not a market maker in the securities or capital market products of the subject company(ies) covered in this report.
3. None of RHBIB’s staff or associated person serve as a director or board member* of the subject company(ies) covered in this report. *For the avoidance of doubt, the confirmation is only limited to the staff of research department.
4. RHBIB did not receive compensation for investment banking or corporate finance services from the subject company in the past 12 months.
5. RHBIB did not receive compensation or benefit (including gift and special cost arrangement e.g. company/issuer-sponsored and paid trip) in relation to the production of this report.

Indonesia

1. PT RHB Sekuritas Indonesia and its investment analysts, does not have any interest in the securities of the subject company(ies) covered in this report.
2. PT RHB Sekuritas Indonesia is not a market maker in the securities or capital market products of the subject company(ies) covered in this report.
3. None of PT RHB Sekuritas Indonesia’s staff** or associated person serve as a director or board member* of the subject company(ies) covered in this report.
4. PT RHB Sekuritas Indonesia did not receive compensation for investment banking or corporate finance services from the subject company in the past 12 months.
5. PT RHB Sekuritas Indonesia** did not receive compensation or benefit in relation to the production of this report.

Singapore

1. RHB Bank Berhad, its subsidiaries and/or associated companies do not make a market in any issuer covered by the Singapore research analysts in this report.
2. RHB Bank Berhad, its subsidiaries and/or its associated companies and its analysts do not have a financial interest (including a shareholding of 1% or more) in the issuer covered by the Singapore research analysts in this report.
3. RHB Bank Berhad’s Singapore research staff or connected persons do not serve on the board or trustee positions of the issuer covered by the Singapore research analysts in this report.
4. RHB Bank Berhad’s Singapore research analysts do not receive any compensation or benefit in connection with the production of this research report or recommendation on the issuer covered by the Singapore research analysts.

Analyst Certification

The analyst(s) who prepared this report, and their associates hereby, certify that: (1) they do not have any financial interest in the securities or other capital market products of the subject companies mentioned in this report, except for:

(2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.