KUALA LUMPUR: AmInvestment Research has increased the earnings forecast for Econpile and target price by one sen to 18 sen after it secured a US$85.7mil (RM347.6mil) contract in Cambodia. Econpile bagged a piling and substructure work subcontract for the integrated entertainment complex in Phnom Penh from MCC International Incorporation Ltd. The construction period is 30 months. The latest job is the first major contract Econpile has bagged in FY21F, boosting its outstanding order book to RM1bil. In its research report on Wednesday, AmInvest Research raised its FY21–23F net profit forecasts by 6%, 9% and 10% respectively. AmInvest Research also revised up its fair value for Econpile by 6% to 18 sen from 17 sen based on eight times revised fully diluted CY21F EPS of 2.2 sen. This is in line with its benchmark forward target PE of eight times for small-cap construction stocks as it retained its underweight. “Our earnings upgrade is to reflect a higher assumption for job wins of RM400mil in FY21F (vs. RM300mil previously). We are keeping our assumption of RM300mil worth of new jobs annually in FY22–23F as we regard the latest lumpy job as non-recurring, ” it said. AmInvest Research said the government will have very limited room for fiscal manoeuvre in 2021 given the elevated national debt, even before the pandemic. The government’s fiscal position has been weighed down further by the economic impact of the pandemic (including reduced petroleum revenues), as well as the massive relief spending to cushion the economic impact of the pandemic. “Under these circumstances, we believe the government is unlikely to roll out new public infrastructure projects in a major way over the short term, particularly, the MRT3 (scaled down to RM21bil) and the KL–Singapore HighSpeed Rail (HSR) (scaled down to RM68bil). “We are also mindful of the acute oversupply situation in the high-rise residential, retail mall and office segments, which translates to weak prospects in property-related job wins for piling contractors like Econpile. “Econpile’s valuations are excessive at 21 to 25 times forward earnings on muted earnings growth prospects, ” it said.
buy apple developer account
buy reputed apple developer account, buyappleacc.com is a reputed site with years of experience providing apple developer account for customers, all client satisfy with buyappleacc.com 's apple developer account service.