Econframe’s 4Q2020 revenue more than doubles to RM10.64 million

Total door system solution provider, Econframe Berhad (stock code: 0227), has announced its fourth quarter and full year financial results for the year ended Aug 31 (FY2020).

Econframe registered a recovery in its 4Q2020 financial performance after a temporary disruption of business activities due to the Movement Control Order (MCO) in the previous quarter (3Q2020). In comparison with 3Q2020, the Group’s 4Q2020 revenue more than doubled to RM10.64 million from RM4.78 million. Profit before tax (PBT) grew to RM1.73 million against RM0.17 million in 3Q2020.

Notwithstanding the headwinds, Econframe registered a revenue of RM40.62 million in FY2020, a slight decrease from RM44.09 million in FY2019.

A large bulk of the revenue was contributed by the manufacturing segment, accounting for approximately 79.8 percent or RM32.40 million, which was mainly driven by the sales of metal door frames and fire resistant door sets. The remaining 20.2 percent or RM8.21 million was contributed by the trading segment.

Meanwhile, gross profit was at RM12.91 million, resulting in a gross profit margin of 31.8 percent. PBT for FY2020 stood at RM7.25 million, including a one-off listing expenses of RM0.80 million. Excluding the listing expenses, the Group would have registered a PBT of RM8.04 million in FY2020.

Econframe’s Group Managing Director, Lim Chin Horngsaid, “We are pleased to end the fiscal year with a satisfactory set of results. FY2020 has been an eventful year, especially in the second half of FY2020 where we were faced with unprecedented challenges arising from the MCO in Malaysia. Consequently, our operations were put on hold from middle of March to 20 April 2020. Currently, our operations are back to 100% as per pre-MCO levels and are busy fulfilling the outstanding purchase orders to meet project timeline.”

“We will expand our manufacturing capabilities to include products such as wooden doors and invest in a new and larger plant to support the expansion activities. It will be partly funded by the proceeds from the listing exercise and internal generated funds or borrowings.”

“Overall, we are confident that Econframe is well-positioned for growth, underpinned by the positive demand and strategic expansion activities. Meanwhile, we are increasingly excited to enter the next chapter of our corporate journey as a public listed entity,” he concluded.

Econframe Berhad is slated to be listed on the ACE Market of Bursa Securities on Tuesday, Oct 27. Upon listing on the ACE market, Econframe will have a market capitalisation of RM91.00 million based on the issue price of RM0.28 and its enlarged share capital of 325,000,000 Shares. From the IPO exercise, Econframe will be raising RM18.20 million from its public issue to support its expansion plans.

M&A Securities Sdn Bhd is the Adviser, Sponsor, Underwriter, and Placement Agent for the IPO exercise. 

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