KUALA LUMPUR (May 22): Heavy machinery specialist Favelle Favco Bhd (KL:FAVCO) has secured two contracts worth a combined RM90.6 million for the supply of tower cranes in Australia.

The first contract, awarded by Marr Contracting Pty Ltd, involves staggered deliveries from end-2026 through to the second quarter of 2027. The second job was from G A Caelli Holdings Trust and scheduled for delivery by the second quarter of 2027, its Friday bourse filing showed.

The purchase orders were received on May 18 via its wholly-owned subsidiary in Australia, Favelle Favco Cranes Pty Ltd.

Prior to these contracts, the group's outstanding order book totalled about RM607 million as at May 13, spanning the global oil and gas, shipyard, construction and wind turbine industries.

According to AskEdge data, Favelle Favco is trading at a trailing price-earnings ratio of nine times — the second highest among its peers — and a price-to-net asset value ratio of 0.5 times, the third highest in the peer group.

The group has a trailing 12-month earnings before interest, tax, depreciation and amortisation margin of 14.1% and a return on equity of 5.5%.

Shares in Favelle Favco closed down one sen or 0.61% to RM1.64 on Friday, giving the group a market capitalisation of RM389.07 million.