EITA – DREAM BIG, GO BIG.
Listed in April 2012,
EITA’s share price has more than doubled from its IPO of 76 cent a year ago to
its closing of RM1.54 at July 11, giving it a market capitalisation of RM200.2
million.
EITA Resources Berhad (EITA, 5208), From the humble
beginning in the late 1996’s, EITA has grown to be a leading supplier to
electrical contractors, switchboard fabricators and OEM (Original Equipment
Manufacturer) and manufacturer of Elevaotor Systems and Busduct Systems in
Malaysia. Today, the Company has expanded its business operations to other
Asian countries. EITA have the capabilities to design and manufacture their
elevators and busduct systems and also a range of Electrical and Electronic components
and equipment under its own brand names.
Over the years, EITA has built up
a high level of trust among their customers. The Group principal suppliers and
technology partners are from some of the most respected names in the world.
Quality products and excellent after-sales service have earned EITA the
appreciation of our fast-growing clientele. EITA in-house R & D is a
priority within EITA group, where new technology and improved production
processes are continually improved and tested to create products of internationally
accepted quality. With dedication to customer support, development of
innovative solutions and creation of new products and services, EITA is well
poised for a greater participation in the nation’s progress for years to come.
Current Share Price: RM1.46
Dividend: RM0.03
EITA AMONG WINNERS OF MRT CORP’S RM67M WORTH OF CONTRACTS
EITA Resources Bhd’s unit EITA
Elevator (M) Sdn Bhd has won a RM15.3
million contract from Mass Rapid Transit Corp Sdn Bhd (MRT). The contract
for the Klang Valley’s Sungai Buloh- Kajang line involves the supply, procurement,
installation, testing and commissioning of the lift system for all MRT
underground stations and ancillary buildings (Package LS-U).
EITA DREAMS BIG, MULLS OVER ACQUISITIONS
The big dreams, EITA hopes to report RM1 billion in revenue by
2020. The group MD Fu Wing Hoong says EITA is moving towards that goal by
growing contributions from its overseas sales from 20% currently to 50% and
revenue from its in-house branded products (manufacturing division) from 50% to
70%. EITA manufacturing division (in-house brand) is grow faster than their
marketing division (third-party brands). Fu says the group has to go beyond the shores of Malaysia and be on the lookout for
merger and acquisition (M&A) opportunities in order to achieve its
RM1billion goal.
FINANCIAL HIGHLIGHT
EITA’s group revenue was RM142.1
million and net profit was RM11.7 million for the nine-month financial period
ended Sept 30, 2013 (FY2013). As at FY2013, EITA’s revenue had seen a
three-year compound average growth rate (CAGR) of 5%. As at March 31 this year, the group had RM21.1 million net cash.
For the six months ended March 31, 2014 (6M14), EITA’s net profit was RM5.5
million on RM97.8 million revenue. EITA’s dividend of RM0.03 paid at April 28,
2014.
Listed in April 2012, EITA’s share price has more than doubled from its
IPO of 76 cent a year ago to its closing of RM1.56 at July 22, giving it a
market capitalisation of RM202.8 million.
As a whole, one of the EITA’s key substantial shareholders
is owned by QL Resources Berhad (QL, 7084)’s Chia family.
EITA has secured some sales in
Indonesia for its busduct products and expect to sell Pyrotech there. Growth
prospects in Indonesia and Middle East will be the key immediate focus. It has
also installed elevator systems in Singapore, Laos, Vietnam, Philippines, Hong
Kong and Saudi Arabia.
Currently, the elevator projects
under its portfolio include The Shore in Melaka, Gleneagles Hospital in Johor
Bahru, Viva City Mall in Kuching, Al Jouf University in Saudi Arabia, and
Movenpick White Sand Beach Resort in Thailand. As at March 31, the elevator division had an order book of RM135 million.
Happy Trading
Asianbuffett
