ECA Integrated Solution Berhad
Financial Highlights
| 2021 | 2022 | 2023 | 2024 | 2025 | ||
|---|---|---|---|---|---|---|
| Revenue | (RM ‘000) | 20,511 | 27,530 | 35,601 | 18,804 | 27,492 |
| Gross Profit/(Loss) | (RM ‘000) | 11,281 | 11,730 | 18,543 | 1,806 | (1,697) |
| Profit/(Loss) Before Taxation | (RM ‘000) | 8,007 | 7,902 | 10,884 | (7,350) | (10,393) |
| Profit/(Loss) After Taxation | (RM ‘000) | 8,177 | 7,806 | 10,787 | (7,825) | (10,052) |
| EBITDA | (RM ‘000) | 8,551 | 8,494 | 12,214 | (5,534) | (8,168) |
| Earning/(Loss) Per Share | (sen) | 1.91* | 1.83* | 1.86 | (1.35) | (1.74) |
| Shareholders’ Equity | (RM ‘000) | 17,040 | 24,846 | 61,144 | 53,318 | 43,301 |
| Return on Equity | 48.0% | 31.4% | 17.6% | (14.7%) | (23.2%) | |
| Current Ratio | (times) | 3.59 | 3.94 | 8.74 | 7.35 | 2.87 |
| Gearing Ratio | (times) | 0.29 | 0.27 | 0.11 | 0.18 | 0.43 |
Note:
- For illustration purposes only based on ECA Integrated Solution Berhad’s share capital of 427,500,225 ordinary shares after the issuance of shares to the acquisition of ECA Advanced Solutions Sdn. Bhd. on 21 September 2022.
REVENUE (RM ‘000)
PROFIT/(LOSS) BEFORE TAXATION (RM ‘000)
PROFIT/(LOSS) AFTER TAXATION (RM ‘000)
EARNING/(LOSS) PER SHARE (SEN)
Management Discussion and Analysis
2025
At A Glance
The financial year ended 31 October 2025 (“FY2025”) turned
out to be another challenging year for ECA Integrated Solution
Berhad and its subsidiaries (“ECA” or “the Group”) as global
economic uncertainty, geopolitical tensions and reciprocal tariff
measures persisted, placing continued pressure on supply chain
stability and operating costs. These conditions prolonged the
slowdown in the machine manufacturing sector serving the
semiconductor industry, resulting in demand for semiconductor
related components and equipment remaining soft during the
year.
Reflecting the arduous operating environment and
elevated cost pressures experienced in the earlier part of
the financial year, the Group recorded a wider loss after tax
(“LAT”) of RM10.1 million in FY2025 compared with a LAT
of RM7.8 million in FY2024.
Nevertheless, revenue increased 46.2% Year-on-Year
(“YoY”) to RM27.5 million in FY2025 from RM18.8 million
previously, largely attributable to a pickup in sales of
integrated production systems and standalone automation
equipment in the fourth quarter, following softer
performance in the preceding quarters. The stronger
closing-quarter performance enabled the Group to return
to profitability in the final quarter, signalling early signs of
operational recovery.
Business and
Operational Review
Headquartered in Penang, ECA is a homegrown manufacturing automation solutions provider. Since the
establishment in 2016, the Group has focused on supporting manufacturers in enhancing productivity,
consistency and operational efficiency through the adoption of advanced automation technologies.
Our core offerings comprise integrated production systems and standalone automated equipment,
customised to meet the specific production requirements of its customers.
Integrated Production Systems (IPS)
Our IPS solutions offer multiple automated modules
configured to operate cohesively as a single production
line, delivering customised automation solutions tailored
to
each customer’s manufacturing requirements.
These systems are designed to perform a sequence
of manufacturing processes with a high degree of
precision, consistency and repeatability. We provide
end-to-end execution across the entire project lifecycle,
from conceptual design and engineering to fabrication,
software development, assembly, integration, testing
and commissioning.
During the year under review, we expanded our IPS
offerings to include testing solutions for consumer
electronics applications. We have secured orders for this
new offering, which represents an extension of the Group’s
automation capabilities beyond the existing services,
broadening our addressable market and strengthening our
position in high-growth end-user segments.
Components of an Integrated Production System
Standalone Automated Equipment (SAE)
In addition to IPS, the Group designs and supplies SAE
solutions, encompassing both standard and customised
equipment tailored for specific manufacturing functions.
These include applications such as testing and inspection,
transfer and loading, laser processing and packaging.
Similar to IPS projects, SAE solutions are supported by in
house engineering, fabrication, testing and commissioning
capabilities.
To complement both IPS and SAE solutions, we provide
after-sales support services, including routine maintenance,
spare parts replacement, system reconfiguration and
reprogramming. These services are designed to support
customers’ evolving operational needs and to enhance
long-term system reliability.
Standalone Automated Equipment Examples
Manufacturing Facilities and Capabilities
Our manufacturing facility is located at Kawasan
Perindustrian Bukit Minyak, Penang, with a
total gross built-up area of approximately
45,000 square feet. Of this, around 25,000
square feet are dedicated to manufacturing,
assembly and fabrication activities. The existing facility provides sufficient capacity to support
ongoing operations while allowing flexibility to
accommodate varying project requirements.
The Group’s technical expertise and ability to adapt
automation solutions across different manufacturing
environments have enabled us to establish long-standing
relationships with multinational corporations (“MNCs”).
Our capabilities support customers across a broad range of
industries, including semiconductors, electric vehicles and
automotive components, solar energy components, as well
as 5G telecommunication equipment components. The
Group’s customer base spans multiple regions, including
Europe, Asia-Pacific and the United States.
Key Industries Served
Automotive and E-Mobility
Electronic Devices
Semiconductor
Renewable Energy
Aerospace – potential growth industry
Beyond the existing key industries served, the Group has
earlier identified aerospace as a new potential growth
industry, given the sector’s demand for high precision
engineering, stringent quality standards and advanced
automation, which aligns well with our technical capabilities
and presents opportunities to extend our automation
solutions into high-value manufacturing applications.
On this end, we are pleased to share we have received
the AS9100 Aerospace Quality Management System
certification by SIRIM QAS International Sdn. Bhd. in
March 2025. The AS9100 certification is a quality
management system standard for the aerospace, space,
and defence industries. Building on this milestone, we are
in active discussions with prospective customers in the
aerospace industry to produce aero-structure parts for
them.
New Manufacturing Plant in the Making
Following an earlier announcement in May 2024, the
Group had since in Jan 2025 completed the acquisition
of an approximately 3.05-acre parcel of industrial land
in Seberang Perai Tengah, Penang, from the Penang
Development Corporation for approximately RM8.0
million.
This parcel of land is intended to support the Group’s
longer-term capacity requirements and accommodate
future manufacturing activities, including automation
solutions and aero-structure fabrication services.
Subject to regulatory approvals, the Group plans
to
commence construction works by early 2027,
with completion expected within 18 months from
commencement.
Financial Performance
Revenue & Profitability
For FY2025, the Group recorded revenue of RM27.5 million, representing an increase of 46.2% from RM18.8 million in
FY2024, driven by higher sales and project deliveries of IPS and SAE, particularly in the fourth quarter. Nevertheless, despite
the improved topline performance, the Group recorded a gross loss of RM1.7 million for FY2025 compared with a gross profit
of RM1.8 million in the previous financial year, mainly due to increase in raw material and labour costs, additional expenses
incurred following late-stage changes to product requirements, as well as provision for project improvement.
These factors, together with fixed operating costs and unrealised foreign exchange losses, consequently resulted in the
Group reporting a loss after tax (“LAT”) of RM10.1 million versus a LAT of RM7.8 million in the preceding financial year.
Revenue by Geographical Segment
In FY2025, domestic sales
contributed 24.3% of the Group’s
total revenue, while overseas
markets accounted for the remaining
75.7%. This compares with FY2024,
when domestic and overseas sales
represented 45.3% and 54.7% of
total revenue, respectively. Domestic
revenue was primarily derived from
MNCs operating in Malaysia, while
overseas revenue was generated
from customers across North
America, the Asia Pacific and Europe.
Capital Structure and Resources
- Cash and cash equivalents include deposits with licensed banks.
As at 31 October 2025, the Group’s total assets stood
at RM70.2 million, representing a marginal increase from
RM66.3 million in FY2024, largely attributable to higher
property, plant and equipment (“PPE”), as well as increased
trade receivables. Cash and cash equivalents (including
deposits with licensed banks) decreased to RM18.4 million
from RM27.4 million in FY2024, reflecting the utilisation
of cash to fund PPE acquisitions and to support working
capital requirements.
Total equity declined to RM43.3 million as at 31 October
2025, from RM53.3 million previously, primarily from lower
retained earnings following the LAT incurred in FY2025.
During the same period, total liabilities increased to
RM26.9 million from RM13.0 million in FY2024, chiefly
owing to higher trade payables and bank borrowings
undertaken to finance the acquisition of land to facilitate
future business expansion and operational requirements.
Notwithstanding the increase in liabilities, the Group
remained in net cash, a position we have maintained since
our listing in 2022, providing financial flexibility to support
ongoing operations.
Balance Sheet and Key Ratio Overview as at 31 October 2025
Total Assets
RM
0
mil
Total Liabilities
RM
0
mil
Total Equity
RM
0
mil
Total Cash and Bank Balances
RM
0
mil
Current Ratio
0
times
Gearing Ratio
0
times
Net Gearing
Net Cash
Cash Flows from Operating Activities
Net cash used in operating activities amounted to RM4.8
million in FY2025, compared with RM4.6 million in the preceding year, mainly attributable to operating losses
recorded during the year and higher working capital
requirements, particularly arising from increases in
receivables, partially offset by higher payables.
Cash Flows from Investing Activities
Net cash used in investing activities rose to RM10.6 million
in FY2025, mainly attributable to higher capital expenditure
incurred for the acquisition of PPE to support operational
expansion and capacity requirements. By comparison, net
cash used was RM1.6 million in FY2024.
Cash Flows from Financing Activities
FY2025 net cash generated from financing activities
amounted to RM7.1 million due to drawdown of bank
borrowings to finance the acquisition of land, partially
offset by repayments of lease liabilities.
Anticipated or
Known Risks
Brighter
Prospects Ahead
Dividend
For the financial year under review, in view of ECA’s
f
inancial performance and the challenging operating
environment, the Board has not recommended any
dividend. This decision reflects a prudent approach to
capital management, prioritising the preservation of
f
inancial flexibility to support the Group’s operational
requirements and to capture future growth opportunities.
Acknowledgement
On behalf of the Board, I would like to thank the management team and employees for their
dedication, professionalism and resilience throughout the year. Their continued efforts were
instrumental in guiding the Group through a challenging operating environment.
I would also like to express our appreciation to our
shareholders, customers, suppliers, business partners,
bankers, government authorities and all stakeholders
for their continued confidence and support during the
f
inancial year under review. Next, my sincere gratitude
goes to my fellow Board members for their leadership,
guidance and valuable contributions throughout the
year.
As we progress forward, the Board, together with the
management team, remains committed to upholding
strong governance standards while delivering
sustainable growth for the benefit of all stakeholders.
OOI CHIN SIEW
Executive Director / Chief Executive Officer