KUALA LUMPUR (Sept 25): Heavy machinery specialist Favelle Favco Bhd (KL:FAVCO) said on Friday it has secured three contracts worth RM88.8 million to supply cranes.
In a bourse filing, the group said the first two contracts were awarded by Saipem Offshore Construction and Malaysia Marine and Heavy Engineering Sdn Bhd, with delivery expected by the end of 2027.
The third contract was awarded by OceanMight Sdn Bhd and is scheduled for delivery in the third quarter of 2027.
Favelle Favco said the contracts are expected to contribute positively to its earnings and net assets for the financial year ending Dec 31, 2026 and beyond.
Two weeks ago, the group secured four contracts to supply cranes worth a total of RM131.7 million.
Favelle Favco's net profit rose 53.7% to RM12.7 million for the second quarter ended June 30, 2026, from RM8.2 million a year earlier, thanks to better profit margin and higher finance income. However, revenue dropped 9.4% to RM208.54 million from RM230.16 million.
According to AskEdge data, Favelle Favco is trading at a trailing price-earnings ratio of 7.7 times — the second highest among its peers — with 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 14.7% and a return on equity of 6.0%.
Favelle Favco is a globally renowned, Malaysia-based heavy machinery manufacturer that specialises in the design and production of high-speed, heavy-lift, customised industrial cranes. It secured contracts for many of the world's tallest buildings including the Burj Khalifa, the Petronas Twin Towers, and Taipei 101.
Favelle Favco’s shares closed unchanged at RM1.55 on Friday, giving the group a market capitalisation of RM370.9 million.