KUALA LUMPUR, May 21 — AmInvestment Bank remains cautious on the local construction sector’s outlook, given the elevated national debt which has been further weighed down by the economic impact of the Covid-19 pandemic.

The recent news on the MRT3 potentially commencing work in the second half of the year aside, the fact remains that the government will have very limited room for fiscal manoeuvre due to the massive relief spending to cushion the economic impact of the pandemic, it said in a research note today.

On Econpile Holdings Bhd, it said the latest contract secured by the group, worth RM64.3 million, has boosted the company’s year-to-date job wins to RM512 million and its outstanding order book to RM820 million.

"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,” it said in a research note today

Maintaining its ‘underweight’ call for the group, AmInvestment Bank raised its Econpile’s net profit forecast for the financial years 2022 and 2023 by 12 and 13 per cent, respectively, and upgraded its fair value by 10 per cent to 22 sen from 20 sen. — Bernama