Firm debut for Econframe on ACE market
KUCHING: Total door system solution provider, Econframe Bhd (Econframe), has successfully debuted on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities), rising as much as 15.5 sen from its initial public offering (IPO) price of 28 sen after listing.
The stock is categorised under the Industrial Products and Services sector and carries the stock name of EFRAME and stock code of 0227.
Econframe’s product offerings are complete with metal door frames, fire resistant door sets, wooden and metal doors as well as ironmongery such as locksets and hinges. The Group’s products are supplied on project basis to a diversified portfolio of property developments including residential, commercial, mixed and industrial developments.
Econframe’s froup managing director, Lim Chin Horng said, “This marks a momentous occasion for all of us in Econframe as we begin our next chapter of growth.
“We believe that being a listed company will definitely strengthen our foothold and broaden our market presence in the industry as we strive to bring
This marks a momentous occasion for all of us in Econframe as we begin our next chapter of growth.
Lim Chin Horng
our group to greater heights and deliver sustainable value to our shareholders.
“Since our establishment 19 years ago, our total door solutions have been widely distributed and well received by various notable property developers in Malaysia.
“Based on our track record and strong clientele portfolio, we are confident that we will continue to thrive as we open the door to new possibilities. This optimism is underpinned by our competitive strengths, supported by our continuous efforts in expanding our capabilities and healthy pipeline of orders.
“We have been busy over the past few months since the resumption of economic activities. The momentum is expected to remain for next quarters given that we have unfulfilled purchase orders of approximately RM47.01 million.
“In addition to that, we foresee more property launches to follow through as major property developers continue to introduce new property projects. Our growth will continue to be driven by the fire-resistant door sets, ironmongery, and wooden doors segments while supported by steady demand in metal door frames segment,” he added.
According to the National Property Information Centre (NAPIC), averagely 700,000 new property units per year are supplied into the market from Year 2016 to Year 2019. This augurs well for the Group as it translates to growth potential for its market expansion activities.
Econframe raised RM18.20 million from the public issue of its IPO exercise. RM5 million or 27.5 per cent of total proceeds will be used in land acquisition and construction of new manufacturing facility to streamline production.
Meanwhile, RM4 million (22 per cent) will be used to automate the manufacturing process with robotic technology to increase the productivity of welding and profile forming process, RM6.20 million (34.1 per cent) for working capital, with the balance RM3.00 million (16.4 per cent) earmarked for listing expenses.
Based on its recently released 4th quarter results ended August 31, 2020, Econframe continue to record healthy results, notwithstanding the impact from the Movement Control Order.
The group recorded revenue of RM40.62 million for the FY20, a marginal decrease from RM44.09 million in FY19. Gross profit stood at RM12.91 million, translating to a 31.8 per cent gross profit margin. Meanwhile, profit before tax was at RM7.25 million in FY20.
M&A Securities Sdn Bhd is the adviser, sponsor, underwriter, and placement agent for the IPO exercise.