Econframe records RM40.62 million revenue in fourth quarter of 2020

KUCHING: Econframe Bhd (Econframe) registered a commendable recovery in its fourth quarter ( 4Q20) financial performance after a temporary disruption of business activities due to the Movement Control Order ( MCO) in the previous quarter (3Q20).

In comparison with 3Q20, the group’s 4Q20 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 3Q20.

Notwithstanding the headwinds, Econframe registered a revenue of RM40.62 million in FY20, a slight decrease from RM44.09 million in FY19.

A large bulk of the revenue was contributed by the manufacturing segment, accounting for approximately 79.8 per cent or RM32.40 million, which was mainly driven by the sales of metal door frames and fire resistant door sets.

The remaining 20.2 per cent 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 per cent. PBT for FY20 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 FY20.

“We are pleased to end the fiscal year with a satisfactory set of results. FY20 has been an eventful year, especially in the second half of FY20 where we were faced with unprecedented challenges arising from the MCO in Malaysia,” Econframe’s group managing director Lim Chin Horng said.

“Consequently, our operations were put on hold from middle of March to April 20, 2020. Currently, our operations are back to 100 per cent as per pre-MCO levels and are busy fulfilling the outstanding purchase orders to meet project timeline. Since the resumption of economic activities, we have received encouraging demand for our products and based upon the list of tender invites, we expect the momentum to sustain in the following year.

“With this in mind, we are charting our way forward, steadfastly focused on our longerterm objectives and strategic directions. 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.