Price Target Analysis: EFRAME (0227)

💢Is Weakness In Econframe Berhad (KLSE:EFRAME) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects? 💢

2 weeks ago

💢 Econframe Berhad (KLSE:EFRAME) has had a rough three months with its share price down 14%. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Specifically, we decided to study Econframe Berhad's ROE in this article.

Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. 💢

2 weeks ago

How Is ROE Calculated?
ROE can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for Econframe Berhad is:

12% = RM14m ÷ RM113m (Based on the trailing twelve months to May 2024).

The 'return' is the yearly profit. That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.12 in profit.

Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.

Econframe Berhad's Earnings Growth And 12% ROE
To start with, Econframe Berhad's ROE looks acceptable. Especially when compared to the industry average of 4.3% the company's ROE looks pretty impressive. This certainly adds some context to Econframe Berhad's exceptional 22% net income growth seen over the past five years. However, there could also be other causes behind this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.

2 weeks ago

Next, on comparing with the industry net income growth, we found that Econframe Berhad's reported growth was lower than the industry growth of 33% over the last few years, which is not something we like to see.

By Yahoo Finance... have a look as the link cant be share

2 weeks ago

💢Is Weakness In Econframe Berhad (KLSE:EFRAME) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects? 💢

https://finance.yahoo.com/news/weakness-econframe-berhad-klse-eframe-061334255.html

2 weeks ago

Dividend4You

If eframe announce dividend lagi bagus! anyhow Eframe profit & revenue will shoot back like rocket !

2 weeks ago

Waller

Just collect some if you are confidence that Eframe will present a good QR by the end of this month

2 weeks ago

biggie0000

my 0.59 queue kena, time for big comeback tmr

2 weeks ago

When will be the upcoming Quarter be out mostly...?
Thu or Fri or next week since its not today 🤑

2 weeks ago

grimpoinvestor

Next thursday or friday will announce, should be another performing quarter

2 weeks ago

Ghazaar

Then it's a good time to collect when it's below 60 cents

2 weeks ago

IdrakUsama

Khamis ni Deepavali, jadi I rasa selewat-lewatnya sebelum hari Rabu

1 week ago

@IdrakUsama
💢 Jangan Lewat before Deepavali cos nanti BURSA capati the firm KAW KAW punya oh.... 🤣💢

1 week ago

N4rc0t

New era coming for ECONFRAME, hold tight sit tight!!

1 week ago

MarketNavigator

Today the QR will be out. Most likely after the market closes

1 week ago

holy crap... both mother and son look SHIT in red 😱😱😱

1 week ago

Waller

Strong rebound when the market closes. ha. Traders are getting emotional stirred 😆

1 week ago

💢 Single-tier interim dividend of RM0.02 per ordinary share for the financial year ended 31 August 2024
Ex-Date 21 Nov 2024
Payment Date 11 Dec 2024 💢

1 week ago

💢 https://klse.i3investor.com/web/blog/detail/Trend2themoon/2024-10-30-story-h472876675-A_Deep_Dive_into_FY2024_Q4_of_Econframe_Berhad_KLSE_EFRAME
A Deep Dive into FY2024 Q4 of Econframe Berhad 💢

1 week ago

💢 That's definitely a GREAT Move
I really want to give the KING 👍👍👍 💢

1 week ago

Adjusting for the non-core amortisation expense, net profit would have been RM2.4 million for 4QFY2024 and a record RM14.6 million for FY2024.

Looking to the year ahead, the company sees a bright outlook underpinned by a strong order book in both the door and aluminium sectors, according to Econframe group managing director Lim Chin Horng.

“For our door frame business, we have consistently replenished our order book while expanding orders for our aluminium glazing and façade works business.

“The healthy order book across both segments provides us strong earnings visibility for the coming year,” he said.

By Izzul Ikram / theedgemalaysia.com
30 Oct 2024, 08:30 pm

1 week ago

i was caught of sudden abnormal react...
looking at the price in green during closing... feel ton of relieving 🤣🤣🤣
then 2 cents of dividend - WOW I FEEL GOOD REAL GOOD 😍

1 week ago

Market is always UNPREDICTABLE...
😱😱😱
💣💥💥💥
🚑🚑🚑

1 week ago

Stock4Real

Wah result not bad wor + dividend, undervalue for sure

1 week ago

stampid54

no need to bother much about the market downturn because it's just temporary. We just prepare the bullets to snipe for cheaper price

1 week ago

BradonOoi

Market sentiment will back on track after US election. I am sure of this

https://www.thestar.com.my/business/business-news/2024/11/04/dollar-falters-stocks-tick-up-as-markets-gird-for-us-election-showdown

5 days ago

Financial performance getting better but the price keep going down, good time for some bargain hunting perhaps.

5 days ago

IdrakUsama

Tak ape, Eframe mempunyai aliran tunai yg sihat, dan ia mampu membayar dividen yg tinggi kpada shareholders

4 days ago

elmendaman

of course undervalue hehe, got dividend & cash flow is good, some more price is cheap too

4 days ago

Guess its time to practice what Buffett always preach, "be greedy when others are fearful"

4 days ago

FlashParadox

Robust increase in sales and prices for residential properties. Eframe's order books are still full !

https://theedgemalaysia.com/node/732643

3 days ago

LuckyGuns

Worst is over for the residential property market. Demand and prices are continue to trend higher going forward, expect more dividend coming soon.

3 days ago

There is sign of divergence, start grabbing before is too late

3 days ago

EFRAME is a great example of a company committed to innovation in the construction sector. Their focus on modern design and advanced manufacturing processes really sets them apart in an industry that values both aesthetics and functionality.

2 days ago

BradonOoi

The company has strong cash flow and is net cash positive, making it a good opportunity to consider collecting shares ahead of the upcoming dividend

2 days ago