ECA Integrated falls after another quarter in the red, loses all analyst coverage

KUALA LUMPUR (Dec 30): Shares of ECA Integrated Solution Bhd (KL:ECA) fell on Monday in active trade after the automation systems company reported another quarterly net loss and lost analyst coverage.

ECA Integrated fell as much as 12% or 3.5 sen to 25.5 sen. The stock was trading at 27.5 sen at 9.45am, giving the company a market capitalisation of RM159 million. Trading volume totalled nearly nine million shares so far.

Public Investment Bank, the only research house tracking ECA Integrated, said it is ceasing coverage of the stock, flagging a challenging outlook amid sluggish global car sales dragging on ECA Integrated.

“The slowdown in the global automotive industry attributed to shift of strategy and price war has caused some automotive players to pull back or slow down their capex spending,” the research house cautioned.

Shares of ECA Integrated, which builds equipment automating production for the semiconductor and automotive industries, have lost more than half of their value since the start of 2024 as the company grappled with two consecutive quarters of net losses.

The company, which was listed in November 2022, derived about one-third of its revenue from clients in the semiconductor industry, according to its prospectus. The company did not provide revenue breakdown by industry segments in its latest annual reports or quarterly results.

At its last price, ECA Integrated is still above its initial public offering price of 17 sen per share.

ECA Integrated, nevertheless, has sufficient capital to weather the storm, Public Investment Bank said, noting that the company is sitting on a net cash position of RM18.9 million. That would allow the company to withstand the tough conditions for the next two years, the research house said.

The company is currently controlled by chief operating officer Chua Lye Hock with a 23% stake and chief executive Ooi Chin Siew holding 21%. Kang Ewe Kheng, the senior vice president and head of design and development, has a 12% stake in the company.