Econpile Holdings Bhd

Econpile Holdings Bhd has a liquidity position that is medium in risk, with a current ratio of 2.25 and a debt-to-equity ratio of 0.38, indicating a relatively balanced capital structure. However, the company reported negative operating cash flow of -10,657,000 MYR and free cash flow of -1,670,000 MYR, which suggests cash flow constraints.

Profitability metrics are weak, with a return on equity of -0.74% and a return on assets of -0.41%. These figures are below the typical performance thresholds for the construction and engineering industry, which often emphasize high asset turnover and strong gross margins. The company's operating income was -204,000 MYR, and net income was -2,757,000 MYR, indicating a significant decline in profitability.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and project-specific risks. The absence of segmental or geographic breakdowns in the financial data limits the ability to assess the company's risk profile comprehensively.

Looking ahead, the company's growth trajectory is uncertain. The current fiscal year is expected to show a decline in revenue, with no clear indication of recovery in the next fiscal year. The capital expenditure of -9,057,000 MYR suggests ongoing investment in infrastructure, but the negative operating cash flow raises concerns about the sustainability of these investments.

Risk factors include liquidity constraints and the potential for dilution, although the risk of dilution is currently assessed as low. The company's negative net cash position after subtracting total debt is a key flag, indicating potential challenges in meeting short-term obligations.

Recent events, including analyst estimates, suggest a cautious outlook. The mean price target is 0.36 MYR, with a median of 0.40 MYR, and no strong buy recommendations. The company has received three buy ratings and no hold ratings, indicating a mixed but not overly negative sentiment from analysts.

Analysts project 700% upside to a mean target price of 0.36 MYR, significantly above the current market price of 0.045 MYR.

Free cash flow surged 119.6% year-over-year to 5.64 million MYR in FY2025, indicating improved operational cash generation.

Operating income improved by 154.6% year-over-year to 7.88 million MYR in FY2025, signaling a return to operational profitability.

Cash conversion ratio of 3.87 places the company in the top quartile, outperforming the cohort median of 0.66.

Net income turned positive to 1.24 million MYR in FY2025, reversing the net loss of 25.15 million MYR in FY2024.

Net margin of -2.78% and operating margin of -0.21% rank in the bottom quartile compared to the construction cohort.

Long-term debt increased to 109.23 million MYR in FY2025, remaining elevated despite recent profitability improvements.

Return on equity of -0.74% lags the cohort median of 4.75%, indicating poor capital efficiency relative to peers.

The company faces medium liquidity risk, which could constrain financial flexibility amid ongoing revenue declines.

Revenue MYR 87.6M; Operating income -MYR 5.9M.

• ▍Revenue MYR 87.6M
• ▍Operating income -MYR 5.9M
• ▍Net margin -10.4%

Revenue MYR 99.0M; Operating income -MYR 204.0k.

• ▍Revenue MYR 99.0M
• ▍Operating income -MYR 204.0k
• ▍Net margin -2.8%

Revenue MYR 286.0M, −31,5% YoY; Operating income +154,6% YoY.

• ▍Revenue MYR 286.0M, −31,5% YoY
• ▍Operating income +154,6% YoY
• ▍Net income +104,9% YoY
• ▍Free cash flow +119,6% YoY
• ▍Net margin 0.4%

Revenue MYR 417.6M, +11,1% YoY; Operating income −106,6% YoY.

• ▍Revenue MYR 417.6M, +11,1% YoY
• ▍Operating income −106,6% YoY
• ▍Net income −60,4% YoY
• ▍Free cash flow −197,5% YoY
• ▍Net margin -6.0%

Revenue MYR 376.0M, +2,6% YoY; Operating income +75,5% YoY.

• ▍Revenue MYR 376.0M, +2,6% YoY
• ▍Operating income +75,5% YoY
• ▍Net income +61,7% YoY
• ▍Free cash flow +61,0% YoY
• ▍Net margin -4.2%

Revenue MYR 366.6M, −12,8% YoY; Operating income −267,7% YoY.

• ▍Revenue MYR 366.6M, −12,8% YoY
• ▍Operating income −267,7% YoY
• ▍Net income −468,6% YoY
• ▍Free cash flow −179,4% YoY
• ▍Net margin -11.2%

Revenue MYR 420.1M; Operating income MYR 17.0M.

• ▍Revenue MYR 420.1M
• ▍Operating income MYR 17.0M
• ▍Net margin 2.6%