Automated manufacturing solutions provider, ECA Integrated Solution Berhad says it is positive that its robust performance will prevail in its financial year ending 31 October 2023, underpinned by the continued shift towards automation in the face of manpower shortage and a rising cost environment.
Major shareholder Mr. Chua Lye Hock, who is also the Executive Director-cum-Chief Operating Officer said, “I have just returned from work trips to the USA and Mexico. The response from customers to our automation solutions has been very encouraging. We are working to secure more orders. Coupled with the existing orders on-hand, we look forward to achieving another breakthrough performance for us in FY2023.”
To recap, in the recently released fourth quarter financial results, ECA registered a 34.2% increase year-on-year in FY2022 revenue to reach RM27.5 million as it delivered more IPS and SAE to its customers. Meanwhile, its net profit of RM7.8 million at first glance showed a reduction as compared with the RM8.2 million in FY2021. However, after adding back RM1.2 million one-off listing expenses, the adjusted FY2022 net profit would have been approximately RM9.0 million, a record high for the Group.
“Notwithstanding our achievement, we are still small in size. We see so much room to grow from here. The trend towards automation is here to stay and the demand will only get greater, driven by the need for businesses worldwide to remain competitive. This is what our customers are telling us too. After seeing the outcomes of our solutions, they are investing larger budgets with plans to further automate more intricate production processes. This is great news for us because our speciality is to provide sophisticated, customised solutions. In addition to our current solutions, we are also developing several new ones that we hope to release later this year. When timing is right, we’ll provide more information.” Mr. Chua concluded.
With the Group’s listing proceeds of RM25.5 million now in place, ECA will be using the proceeds with its expansion plans including acquiring new advanced machineries and allocating higher working capital to undertake bigger orders. It has also increased its headcount of engineers to cope with the rising demand.
