PublicInvest thinks ECA Integrated is poised to have a strong year
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00:00 Happy midweek, it is. ECA Integrated Solutions, after Public Invest paid them a visit and
00:06 walked away confident of the group's prospects for the year. It is keeping its outperformed
00:11 call and RM1.12 target price. Post its analyst briefing, PIVB are increasingly
00:16 confident that the group will end FY23 on a strong note, despite some pushback by end
00:21 customers due to change of design and cautious spending. The group is currently looking for
00:26 a 3-5 acre land bank in mainland Penang to expand its manufacturing floor space. Based
00:32 on PIVB's estimates, the land bank's size would increase its current floor space of
00:36 50,000 sqft or by at least fourfold. The allocated capex is around RM35-40 million.
00:44 Its Standard Platform Vision Inspection Automated Test Equipment, or ATE, has seen technological
00:49 breakthroughs and is expected to clinch repeat orders soon. The group has set a target of
00:54 double-digit growth for its FY24 top line, underpinned by its current book-to-bill ratio
01:00 of more than one times. Automated Test Equipment makes up about 70% of the current total order
01:06 book, mostly to be recognised in FY24. According to Bloomberg, Public Invest is the
01:11 only research house that covers ECA. So based on the RM1.12 target price, this implies a
01:16 possible upside of 47% from its last close.
01:21 [Music]