KUALA LUMPUR (March 25): Favelle Favco Bhd (KL:FAVCO) said it has secured four contracts worth a total of RM42.6 million to supply tower cranes and offshore cranes.
This is the group's second batch of contract wins this year after securing RM76.3 million worth of orders in January.
In a bourse filing on Wednesday, the group said its wholly-owned subsidiary Favelle Favco Cranes (USA) Inc will supply tower cranes to Select Crane Sales, LLC, with delivery expected by the first quarter of next year.
Another three contracts involves the supply of offshore cranes by another wholly-owned subsidiary Favelle Favco Cranes (M) Sdn Bhd to DESB Marine Services Sdn Bhd, Malaysia Marine and Heavy Engineering Sdn Bhd (KL:MHB) and Brooke Holding Sdn Bhd. The delivery will be in the first and second quarters of next year.
Favelle Favco said the four contracts are expected to contribute positively to its earnings and net assets for the financial year ending Dec 31, 2026 and beyond.
AskEdge data shows Favelle Favco has trailing 12-month earnings before interest tax, depreciation and amortisation margins of 14.6%, coupled with a 6.4% return on equity.
Shares in Favelle Favco closed one sen or 0.63% lower at RM1.59 on Wednesday, giving the group a market capitalisation of RM377 million.