EcoFirst 4Q net profit up despite lower revenue

KUALA LUMPUR (July 30): EcoFirst Consolidated Bhd’s net profit rose 9% to RM9 million in the fourth quarter ended May 31, 2018 (4QFY18), from RM8.28 million a year earlier, as the property developer and investor registered lower distribution and administration cost.

In a filling with Bursa Malaysia today, EcoFirst said 4QFY18 revenue fell to RM60.71 million, from RM65.55 million.

For the full year, EcoFirst said net profit surged to RM44.6 million, from RM16.13 million a year earlier. Revenue was higher at RM181.23 million against RM127.21 million, the company said.

“The group’s revenue for the twelve month period ended 31 May 2018 at RM181.2 million, was contributed mainly from the group’s development projects, Phase 1 of Ampang Ukay known as Liberty @ Ampang Ukay (Liberty), and Upper East @ Tiger Lane (Upper East) in Ipoh, Perak, followed by recurring income from the two malls of the group of which the rental income from the retail mall, 1Segamat Shopping Centre was up to 18 September 2017, as the disposal had been completed on the even date.

“The group achieved a growth in profit before tax for the current year at RM50.3 million as compared to RM20.4 million in the preceding year’s corresponding period. The property development division (Liberty project and Upper East project) contributed RM20.5 million (after finance cost) to the group’s profit before tax. The current year results also included gain from disposal of land due to compulsory acquisition by government authorities, amounting to RM28.4 million,” EcoFirst said.

Looking ahead, EcoFirst said it will prudently focus on expanding its existing revenue-generating businesses, as well as continuing to look for new business opportunities.   

The group’s existing revenue generators include its South City Plaza in Seri Kembangan, Selangor. “Rental income from [the] property investment division shall continue to be derived from the operations of South City Plaza located at Seri Kembangan,” EcoFirst said.

Publication: The Edge Markets

Channel: Online

Language: English

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