KUALA LUMPUR (Jan 29): Econframe Bhd’s net profit for the first quarter ended Nov 30, 2023 (1QFY2024) jumped 88.6% to RM4.4 million from RM2.33 million a year ago, on the back of higher revenue.

Earnings per share increased to 1.32 sen from 0.72 sen in the previous corresponding quarter, according to the door system solutions provider’s stock exchange disclosure on Monday.

Quarterly revenue rose 61% to RM27.19 million from RM16.87 million in 1QFY2023, underpinned by higher revenue from the manufacturing segment, mainly due to contribution from its recently acquired 65%-owned subsidiary Lee & Yong Aluminium Sdn Bhd, a specialist in the fabrication and installation of aluminium glazing, glass products, and facade works.

Compared to the immediate preceding quarter of 4QFY2023, the group’s net profit grew 8.34% from RM4.06 million, while revenue rose 29% from RM21.02 million.

On prospects, Econframe said its current business orders remain robust, with its core operations being stable. “Additionally, the recent acquisition of Lee & Yong Aluminium Sdn Bhd is expected to generate synergies that will have a positive impact on the group’s earnings for the financial year ending 2024,” it said.

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.

“In view of the increase in Lee & Yong Aluminium’s order book, we have plans to expand the production capacity at its Kota Bahru facility. This would enable us to capture a larger market share and further cement our position in the industry,” Lim said.

In line with its expansion efforts, Lim said the group had on Jan 15 entered a conditional share sale agreement for a 70% stake in ETA World Sdn Bhd, which is involved in industrial property development and construction, with mitigated investment risk through a three-year profit guarantee.

Lim noted that the group’s acquisition of ETA World Sdn Bhd is part of the plan to grow inorganically, while staying within the value chain that the group is in.

“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.

Shares in Econframe settled 1.5 sen or 1.81% lower at 82 sen on Monday, giving the group a market capitalisation of RM292.85 million.