The listing would accelerate its strategic plans as the funds raised will be used to broaden its market presence
by S BIRRUNTHA / pic by ARIF KARTONO
ECONFRAME Bhd made a strong ACE Market debut with its share price closing its maiden trading day nine sen higher at 37 sen yesterday after hitting a high of 43.5 sen.
At the opening bell, Econframe shares opened higher at 34.5 sen or 23.2% premium to its IPO price of 28 sen.
Econframe, a door and frame maker, raised a total of RM18.2 million from its IPO.
Of the amount, RM5 million will be allocated for the purchase of land and construction of a new manufacturing facility in an effort to further streamline production, while another RM4 million will be invested in manufacturing automation.
A total of RM6.2 million will be used to automate its protection process with robotics equipment.
“We believe being a listed company will definitely strengthen our foothold and broaden our market presence in the industry as we strive to bring the group to greater heights and deliver sustainable value to our shareholders,” group MD Lim Chin Horng (picture) said in a virtual press conference yesterday.
He added that the listing would accelerate its strategic plans as the funds raised will be used to broaden its market presence in the industry.
Lim foresees more property launches as major property developers in the country continue to introduce new property projects.
“Our growth will continue to be driven by a set of fire resistance doors, iron and wooden door segments, as well as supported by strong demand for the metal door segment,” he said.
He added that the company has been busy in the past few months since the resumption of economic activities post the relaxation of the Movement Control Order (MCO) by the government.
He said the momentum is expected to remain over the next few quarters, given the company has unfulfilled purchase orders worth RM47.01 million.
Econframe is expecting demand, production progress and delivery for its products to continue until next year, as its operations are slowly getting back on track.
Lim said the reimplementation of the Conditional MCO did not affect the group’s operations due to sustained demand but admitted that operations were affected during the MCO from March 18 till the end of May due to the slowdown of the construction industry.
Since its establishment 19 years ago, Econframe’s products have been widely distributed and well received by various property developers in Malaysia.
Based on its track record and strong clientele portfolio, Lim said the group is confident it will continue to thrive as it opens the door to new possibilities.
“This optimism is underpinned by our competitive strengths, supported by our continuous efforts in expanding our capabilities and a healthy pipeline of orders,” he noted.
Since its establishment in 2001, Econframe has been supplying its products to leading real estate developers such as Eco World Development Group Bhd, IOI Properties Group Bhd, Sime Darby Bhd, LBS Bina Group Bhd, SP Setia Bhd, Mah Sing Group Bhd, Gamuda Bhd and IJM Land Bhd.
For its financial year ended Aug 31, 2020, Econframe recorded a net profit of RM5.34 million on revenue of RM40.62 million, mainly contributed by its manufacturing segment.
For now, the Board is cautiously optimistic the group is able to withstand the current uncertainties and is well-positioned to capture opportunities as the market recovers.
Econframe was the most actively traded counter on the local exchange yesterday with a total of 294.5 million shares traded.