EFRAME already commands a solid 60% market share in the aluminium door frame market in Malaysia, particularly in the residential sector.
By acquiring machinery and setting up Duroe Glass, they’re not just focusing on door frames anymore; they’re expanding into glass processing, installation and trading. With this move, EFRAME is looking to offer more comprehensive solutions to the construction and building sectors. This could significantly boost its revenue streams and make it more competitive by offering more bundled services.
Let’s not forget EFRAME’s recent acquisition of Lee & Yong Aluminium Sdn Bhd, a company that specialises in facades for buildings and glass frames.
Combining Duroe Glass’s capabilities with Lee & Yong’s expertise is a masterstroke for Econframe. Together, these companies are expected to improve cost efficiency, as they no longer need to outsource their glass requirements, making them even more competitive in pricing for future projects.
One of the key takeaways from this acquisition is better cost control. Having the ability to produce their own glass products and install them means EFRAME will save significantly on outsourcing costs.
This will not only improve their margins but also provide more flexibility in pricing. With better control over their supply chain, Econframe can now offer more competitive pricing, which could open the door to new projects in both residential and commercial sectors.
What Does This Mean for Investors?
For me, this is a pretty exciting development. EFRAME is expanding both vertically and horizontally, moving from just door frames to becoming a more comprehensive player in the building materials industry.
This strategic move should help the company continue growing, both in terms of market share and profitability. At its current market price, this could be a great opportunity for investors looking for growth stocks in the construction and building materials sector. With these developments, $EFRAME (0227.BMS)$ is clearly not standing still. It’s growing, acquiring, and positioning itself as a major player in the Malaysian building materials market. If you’re not looking at this company yet, you might want to start paying attention.
EFRAME quarterly revenue increased to RM24.94 million from RM19.59 million, mainly contributed by the LYA manufacturing segment. Play the long game with EFRAME
According to the National Property Information Centre's (Napic) Property Market 1H2024 Report, the total property transaction value stood at RM105.65 billion with 198,906 transactions during the first half. Door frame demand remains strong
Econframe's stock price is currently in a consolidation trend (67.0 sen - 67.5 sen) but it is showing signs of breaking out (with RSI as a benchmark). We believe that Econframe is likely to challenge the key resistance level of 70.0 sen, followed by a further challenge at the 72.0 sen resistance point.
Support level: 67.0 sen - 67.5 sen Resistance level: 70.0 sen - 72.5 sen
💢 No matter how great the volume are for this few days... I already knew the price is GONNA BE THE EXACTLY THE SAME!! That's because I M NO LONGER NEW TO King DOOR 🤣💢
Strong property demand in Nusajaya seen continuing. There is no need to worry about Eframe's future financial performance, because it will be fine https://theedgemalaysia.com/node/727375
The boost in economic activity in FCSFZ will drive higher property demand there and its surrounding area which would benefit property companies like SP Setia Bhd, UEM Sunrise Bhd, Eco World Development Group Bhd and Sunway Bhd which have projects in the state
💢 Proposed acquisition of machineries and motor vehicles by Duroe Glass Sdn. Bhd. from Suria Kaca Sdn. Bhd
The Board of Directors of Econframe wishes to announce that the Proposed Acquisition of Assets has been completed in accordance with the terms of the APA on 20 September 2024.
💢 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. 💢
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.
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
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....
Crazy Shark
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Moving Upstream
EFRAME already commands a solid 60% market share in the aluminium door frame market in Malaysia, particularly in the residential sector.
By acquiring machinery and setting up Duroe Glass, they’re not just focusing on door frames anymore; they’re expanding into glass processing, installation and trading. With this move, EFRAME is looking to offer more comprehensive solutions to the construction and building sectors. This could significantly boost its revenue streams and make it more competitive by offering more bundled services.
Let’s not forget EFRAME’s recent acquisition of Lee & Yong Aluminium Sdn Bhd, a company that specialises in facades for buildings and glass frames.
Combining Duroe Glass’s capabilities with Lee & Yong’s expertise is a masterstroke for Econframe. Together, these companies are expected to improve cost efficiency, as they no longer need to outsource their glass requirements, making them even more competitive in pricing for future projects.