Econpile Holdings Bhd has successfully secured a significant contract worth RM71.19 million, awarded by Thens Architect on behalf of Platinum Victory Property Sdn Bhd. The contract involves crucial work on a high-rise development located at Jalan Sultan Ismail, one of Kuala Lumpur’s prime areas.
Project Scope and Details
The contract, designated as Package 1, covers the demolition, substructure, and basement works for a proposed 55-storey development. This ambitious project will include 223 office units, a hotel with 329 rooms, and 245 small office/home office (SOHO) units, complemented by five levels of basement car parking.
Econpile Holdings Bhd, known for its expertise in foundation and substructure works, will be responsible for these initial phases of construction. The company has committed to completing the project within 28 months, starting from September 2, 2024.
Positive Impact on Revenue
In a filing to Bursa Malaysia, Econpile expressed optimism about the project, stating that it is expected to contribute positively to the company’s revenue and earnings, starting from the financial year ending June 30, 2025. The contract is set to further solidify Econpile’s position in the market as a leading provider of construction and engineering services.
Risk Management and Operational Control
Econpile also addressed potential risks associated with the project, noting that while there are no foreseeable significant risks beyond the usual operational challenges, the management will implement stringent control measures and operational procedures. These measures are designed to mitigate any potential risks and ensure the smooth execution of the project within the stipulated timeframe.
Market Response
Following the announcement, shares of Econpile Holdings Bhd saw a positive uptick, closing 1.5 sen or 3.8% higher at 41 sen. This increase reflects growing investor confidence in the company’s ability to secure and execute large-scale projects, boosting its market capitalization to RM573.91 million.
Conclusion
Econpile Holdings Bhd’s new contract for the high-rise development at Jalan Sultan Ismail underscores its continued success in securing substantial projects within the construction industry. With a robust project pipeline and strategic risk management, Econpile is well-positioned to continue its growth trajectory in the coming years.
