KUALA LUMPUR (Oct 30): Econframe Bhd’s (KL:EFRAME) net profit fell 57.72% in its final quarter ended Aug 31, dragged by its manufacturing segment’s lower margin and amortisation of intangible assets.

The company, which manufactures metal doors frames, aluminium glazing and glass products, saw a net profit of RM1.72 million for the fourth quarter ended Aug 31, 2024 (4QFY2024), down from RM4.06 million a year ago. Earnings per share dropped to 0.48 sen from 1.15 sen.

Quarterly revenue, meanwhile, was up 16.26% to RM24.44 million from RM21.02 million in 4QFY2023.

The company declared a two sen dividend with a Nov 21 ex-date.  

For FY2024, Econframe's net profit dropped 16.09% to RM10.96 million versus RM13.06 million a year ago. Revenue rose 36.4% to a record RM103.54 million from RM75.91 million previously.

The company’s bottomline on a full-year basis was also dragged by the amortisation of intangible assets related to its acquisition of a 65% stake in Lee & Yong Aluminium Sdn Bhd. 

Lee & Yong Aluminium is a specialist in the fabrication and installation of aluminium glazing, glass products and facade works.

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.

Shares in Econframe ended one sen or 1.69% higher at 60 sen, valuing the company at RM220.78 million. The counter is down 26.8% since the start of the year.