ECA to gain from integrated production processes

ECA Integrated Solution Bhd (ECA) saw its group sales rising 34 per cent year on year (y-o-y) to RM27.5 million, with integrated production line segment contributing RM23.5 million (85 per cent) and standalone automation equipment segment contributing RM3.5 m (15 per cent).

As of end-FY22, the group’s outstanding orderbook totals RM15 million with 50 per cent coming from its standalone automated equipment segment, which is for the back-end test handler and vision inspection a machine.

In addition to this, it has also received repeat orders from two German automotive-related companies.

“Out of the outstanding orderbook, 60 per cent comes from the automotive industry while the remainder is contributed by the semiconductor industry,” commented analysts at Public Investment Bank Bhd (PublicInvest Research).

“Going forward, management sees the standalone automated equipment segment contributing at least 60 to 70 per cent of group sales compared to only 15 per cent in FY22. Strong quarterly results are expected to kick in 2HFY23.”

PublicInvest Research saw that higher margins are also expected as customized-built standalone automated equipment’s are typically higher.

Management has also suggested that it is placing greater focus on vision inspection machine development given the booming demand from the automotive industry, while the integrated production system segment is expected to see steady growth of 10 per cent annually.

The research firm was optimistic on securing orders from new customers.

“Management shared that the feedback for its new vision inspection machines from two new customers is positive.

“As of now, one purchase order from the automotive industry is already in the bag while another is reportedly close to being secured,” it said.