KUALA LUMPUR (July 2): Heavy machinery company Favelle Favco Bhd (KL:FAVCO) said on Thursday that it has secured three contracts worth a combined RM504 million for the supply of offshore and tower cranes.
Two contracts, awarded by Floating Production Solutions Sdn Bhd and Dialog E&C Sdn Bhd, are for the supply of offshore cranes scheduled for delivery by the second quarter of 2027.
The third contract, awarded by Samsung C&T Corporation, is for the supply of tower cranes which involves staggered deliveries from end-2026 to the second quarter of 2027.
The purchase orders were received on May 29 via its wholly owned subsidiary, Favelle Favco Cranes (M) Sdn Bhd, noted Favelle Favco in its bourse filing.
The company said the contract is expected to contribute positively to its earnings and net assets for the financial years ending Dec 31, 2026 and beyond.
In May, Favelle Favco had won tower crane orders worth RM91 million from clients in Australia.
Favelle Favco reported a 50.86% decrease in net profit for the first quarter ended March 31, 2026 to RM6.21 million from RM12.63 million a year earlier, due to lower revenue, increased finance costs and foreign exchange losses. Revenue decreased to RM153.15 million from RM175.33 million.
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 company 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 up four sen or 2.41% at RM1.70 on Thursday, giving the company a market capitalisation of RM403.8 million.