Engtex In For Favourable Conditions With Robust Pipeline Of Projects
Engtex In For Favourable Conditions With Robust Pipeline Of Projects
Engtex Group is poised for significant growth with a robust pipeline of projects expected to boost its order book. According to reports by CGS International Stock Broking House (CGS), the company is set to benefit from a nationwide pipe replacement cycle, local infrastructure projects, water supply schemes, and data centre buildouts. The upcoming ventures and favourable conditions are expected to drive higher utilisation of steel products and improve gross profit margins.
Engtex集團將迎來顯著的增長，預計其訂單簿將得到強有力的項目支持。根據中國銀河國際證券（CGS）的報告，該公司將從全國性的管道更換週期、當地基礎設施項目、供水計劃和數據中心建設中受益。即將到來的項目和良好的條件有望推動對鋼鐵產品的更高利用率，從而提高毛利潤率。
CGS has upgraded its rating on Engtex from Hold to Add, with a revised target price (TP) of RM1.70. This new TP is based on a higher forecast for the company's earnings per share (EPS) for Fiscal Years 2024 to 2026 (FY24F-26F), reflecting anticipated improvements in both the cost environment and project execution. The bank's upgraded outlook is supported by expected growth in the pipe replacement market, government infrastructure spending, and the expansion into new markets such as Sarawak.
中國銀河已將Engtex的評級從Hold升級爲Add，並將目標價（TP）修訂爲RM1.70。這一新的TP基於對公司2024至2026財年（FY24F-26F）每股收益（EPS）的增長預測，反映了成本環境和項目執行預期的改善。銀行升級的前景得到了管道更換市場的預期增長、政府基礎設施支出和進入砂拉越等新市場的支持。
The anticipated pipe replacement capex cycle, driven by the recent water tariff hike and Malaysia's goal to reduce non-revenue water (NRW) to 20% by 2030, is expected to accelerate demand for Engtex's products in the latter half of 2024. Additionally, the revival of government infrastructure projects is set to increase demand for mild steel pipes and wire mesh, further benefiting the company. Engtex is also capitalising on opportunities in the data centre sector and is expanding its operations in Sarawak with a new pipe manufacturing plant slated for completion in 2H26F.
預期的管道更換資本支出週期，受最近的水費上漲和馬來西亞將非營利性水（NRW）降至2030年的20%的目標的推動，預計將加速Engtex在2024年下半年的產品需求。此外，政府基礎設施項目的復甦將增加對普通鋼管和金屬絲網的需求，進一步惠及公司。Engtex還正在利用數據中心行業的機會，並在砂拉越地區擴大其業務，計劃在2026年下半年完成一座新的管道製造工廠。
Engtex demonstrated strong performance in 1Q24, with its gross profit margin rising to 12% from 10% year-on-year (YoY) and net profit increasing by 150% YoY. The company's tender book stood at RM403 million as of June 2024, with an RM80 million backlog from Taliworks expected to contribute to FY24 revenue. The company also announced a 3-for-4 bonus issue to improve trading liquidity.
Engtex在2024年第一季度表現強勁，毛利潤率同比從10%上升至12%，淨利潤同比增長150%。截至2024年6月，公司的投標簿爲RM40300萬，預計來自Taliworks的RM8000萬積壓訂單將有助於財年24年的營業收入。該公司還宣佈了3比4的紅利派發，以提高交易流動性。
CGS's upgrade and revised TP highlight the company's growth potential and attractiveness in the current market environment.
中國銀河的升級和修訂的目標價顯示了該公司在當前市場環境中的增長潛力和吸引力。