KUALA LUMPUR (Jan 10): Furniture manufacturer and ACE Market debutant, Ecomate Holdings Bhd reported a net profit of RM2.62 million for its third quarter ended Nov 30, 2021 (3QFY22), a 245.13% improvement from its net loss in its immediate preceding quarter ended Aug 31, 2021 (2QFY22) of RM1.81 million.

Quarterly revenue for the quarter stood at RM15.68 million, a 142.87% increase from RM6.45 million in its second quarter for FY2022 (2QFY22).

Ecomate said its revenue growth for the quarter under review was mainly due to the higher sales demand from customers located in Malaysia while the improvement in profits was due to higher revenue contribution.

The furniture manufacturer added that the improvements in financial performance compared to the preceding quarter was due to the uplifting of the temporary suspension of manufacturing operations by the government.

“The group’s revenue was mainly derived from manufacture and sale of furniture and furniture parts. Malaysia was the largest regional market, which contributed approximately 43.46% to the group’s revenue in the current financial period,” its filing revealed.

It also added that it had incurred listing expenses of approximately RM270,000 for the quarter.

The company listed just two months ago on Nov 8, 2021.

On its current financial year prospects, Ecomate said the principal geographical areas that it operates in namely, Asia, North America, Australasia and Europe, are “highly sensitive to macroeconomic factors particularly the general economy and uncertainties surrounding the future economic prospects of the countries it exports to”.

Ecomate added that the implementation of the Movement Control Order 3.0 caused the temporary suspension of production from June 1, 2021 as the furniture manufacturing industry was considered a non-essential sector.

“The group resumed production in mid-September 2021 following the completion of 14 days after the second dose of Covid-19 vaccination for the workers.

“In addition, the board will continue to monitor the status and progress of Covid-19 and will regularly review the performance and progress of the group’s operations and financial performance as well as introduce measures to minimise its operating costs, if required.

“The board expects that the group’s prospects for the financial year ending Feb 28, 2022 (FY22) to be challenging,” its filing said.

At midday noon break, Ecomate traded one and a half sen or 2.83% lower at 51.5 sen per share, giving it a market capitalisation of RM185.5 million. At 51.5 sen, the stock is 56% higher than its initial public offering price of 33 sen.