Around Rm56 million. For the record, EFRAME will pay RM28.1mil in cash and the remaining RM27.9mil will be satisfied via the issuance and allotment of 30 million new ordinary shares at 93 cents per share
Erm, just wondering where is the strong fundamental?
1) Market Cap is almost RM300mil, share price RM0.80sen ++ 2) Net Profit is around RM3-4mil per quarter only 3) Revenue is RM20mil per quarter 4) NAT is RM0.25.
I mean, this is not a technology company, this is just a traditional company that doing Door Frame / Window Frame. The profit need to grow to RM10mil per quarter, then only justify its current share price of RM0.80.
It will be consider a good company if share price is around RM0.30-0.40, but at RM0.80 ++ is definitely overprice d. Unless they have something special agenda which we are not aware.
True, it's not a technology company and there are quite a lot of technology stocks in Bursa currently, whereas there are no peers of Eframe so far in Bursa. Needless to say, it continues to make profits every quarters and has more than 30% in GP margin & more than 10% in PAT margin for every quarter as well. If it's not strong in fundementals, I don't know what to say...
Brace yourself for strategic acquisitions! In 2023, EFRAME acquired Lee & Yong Aluminium Sdn Bhd (LYASB) and Trans United Sdn Bhd (TUSB), securing a 60% market share in Malaysia for aluminum door frames.
EFRAME recently shook things up by acquiring 70% of ETA World Sdn Bhd (ETAW) for RM56 million, venturing into construction services and property development.
This two strong point is good and strong to bring Eframe to a whole new level.
LYA specialises in fabricating and installing aluminium glazing, glass products, and facade works that complement Econframe's existing business.
The acquisition comes with a net profit guarantee that LYA shall achieve not less than RM4.0 million annually for three years, from August 31, 2024, to August 31, 2026, and a minimum cumulative net profit of not less than RM12.0 million. "Econframe is excited by the potential of LYA as we see strong synergies.
The group intends to fund the acquisition via a combination of cash and issuance of shares, of which RM28.1 million is to be satisfied in cash and the remaining RM27.9 million via the issuance and allotment of 30 million new ordinary shares in Econframe.
According to Econframe, the acquisition comes with a profit guarantee that ETA World shall achieve an audited profit after tax (PAT) of not less than RM10 million each year for three years, and a cumulative audited PAT of not less than RM30 million.
In tandem with the acquisition, the group also announced the proposed diversification of Econframe into construction services and property development, which includes the design, build and sale of industrial properties.
It highlighted that the proposed acquisition and diversification is expected to complete in the first half of 2024.
Good planning and Good Management company will bring eframe sky rocketing in the year of dragon. Out of just what we understanding of the company understand about the chart, is a slow growth chart, which unlike those company, just one day show or without any fundamental supporting. In this case, Can conclude that Eframe can go for long run.
The Malaysian property market is expected to stabilise in 2024 despite economic uncertainties, with certain areas and submarkets positioned for more robust growth. Thereby, this counter will have robust growth as well
The Group recorded a revenue of RM27.19 million in 1Q 2024, representing an increase of RM10.32 million or 61% compared to RM16.87 million in 1Q 2023. The manufacturing segment witnessed higher revenue by RM7.81 million or 52%, mainly attributed to the revenue contribution from its recently acquired 65%-owned subsidiary, Lee & Yong Aluminium Sdn Bhd (“LYASB”). Excluding the revenue contribution from LYASB, the Group’s revenue would have increased by RM4.02 million or 24%.
The Group recorded a profit before tax of RM6.38 million in 1Q 2024, almost doubled as compared to RM3.16 million in 1Q 2023. The increase in profit before tax was mainly attributed to the higher revenue recorded and improvement in the overall gross profit margins contribution. Excluding the contribution from LYASB, the Group’s profit before tax would have increased by RM1.83 million or 58%.
Current quarter ended 30 November 2023 (“1Q 2024”) compared with immediate preceding quarter ended 31 August 2023 (“4Q 2023”)
The Group recorded an increase in revenue of RM6.17 million or 29% to RM27.19 million in 1Q 2024 as compared to RM21.02 million in 4Q 2023, mainly attributed to higher revenue from the manufacturing segment, driven by the contribution from LYASB. The Group recorded an increase in profit before tax of RM0.84 million or 15% in 1Q 2023, mainly attributed to the higher revenue recorded.
Econframe’s 1Q net profit jumps 88.6% on higher revenue By Choy Nyen Yiau / theedgemalaysia.com 29 Jan 2024, 08:52 pm
In a separate statement, Econframe’s group managing director Lim Chin Horng said the group had successfully secured several projects and enhanced its order book after the acquisition of Lee & Yong Aluminium.
“ETA World has an outstanding order book of RM165.5 million as of end-December 2023, giving it clear earnings visibility in the coming years. More importantly, the profit guarantee of ETA World would ultimately enhance and diversify our bottom line,” Lim said.
Is it far better off if the company distribute some dividends for its value shareholders as acting as appreciation of confidence in its company's future undertakings and advancements...? Growth stocks in acting by extra offering dividends in consistent manner over years will definitely enrich company long term profile in equity market...
If you refer EFRAME's FY2022 and FY2023, its result in q1 is always underperformed one. In other words, its q2 and q3 result will definitely greater than q1 😉 Still got plenty of room for the company to grow
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Waller
138 posts
Posted by Waller > 2024-01-16 15:54 | Report Abuse
Time to accumulate more while it's traded below 90 cents 😉
https://www.thestar.com.my/business/business-news/2024/01/15/econframe-acquires-industrial-property-development-firm-for-rm56mil-to-diversify-business