Profitability improvement driven by higher profit recognition of Liberty @ Ampang Ukay
Kuala Lumpur, Malaysia, 22 January 2020 – Property developer EcoFirst Consolidated Bhd (Ecofirst, 怡嘉控股, Bloomberg: ECOF:MK; Reuters: ECOF.KL) doubled its net profit to RM8.1 million in second quarter ended 30 November 2019 (2Q20) from RM4.1 million in the previous corresponding quarter.
The improved performance was underpinned by the higher profit recognition as well as development cost savings in Liberty @ Ampang Ukay, the Group’s first phase of the flagship development. On track for completion in the third quarter ending 29 February 2020 (3Q20), Liberty @ Ampang Ukay has enjoyed a resounding take-up rate of 97% since its launch in 2016.
Meanwhile, the Group’s revenue moderated 15.4% to RM48.5 million in 2Q20 from RM57.3 million previously, on slower property development sales pending future launches of the Ampang Ukay flagship development.
Even with the significant financial improvements thus far, we intend to continue building on our reputation of providing premium homes in strategic locations at affordable price points. Our hard work in building this reputation is showcased in the strongly taken-up Liberty @ Ampang Ukay being on track to handover to buyers in 3Q20.
As Liberty @ Ampang Ukay is only the first phase in the 87-acre township, we are positive on that the take-up for the upcoming phases of this RM5 billion gross development value (GDV) project will be well-received by homebuyers.”
Group Chief Executive Officer, EcoFirst Consolidated Bhd
Of total 2Q20 revenue, property development remained the main revenue contributor amounting to RM74.7 million or 90.7% of 2Q20 revenue, while the recurring income segment made of property investment and management contributed RM7.6 million or 9.2% of 2Q20 revenue. The remaining RM0.1 million was from the Group’s investment and others.
For first half ended 30 November 2019, EcoFirst’s net profit increased by 9.9% to RM9.6 million in 1H20 from RM8.8 million previously. Group revenue declined 19.2% to RM82.4 million from RM102.0 million a year ago.
About EcoFirst Consolidated Bhd (http://www.ecofirst.com.my/)
Established in 1973, EcoFirst Consolidated Bhd is a public listed company with core businesses in property development, property investment holding and property management.
Steadfast in delivering its projects, EcoFirst revived and completed its 1Segamat Mall, the first and only commercial complex in Segamat. Its South City Plaza in Sri Kembangan is now home to Malaysia largest digital devices accessories outlet and china products centre It has also developed Kondominium Kelab Golf previously known as Upper East @ Tiger Lane, a luxury condominium project in Ipoh, Perak and has acquired a substantial land bank in the Klang Valley.
The Group is currently developing its flagship development in Ampang Ukay, which is envisioned to be the little Hong Kong of Kuala Lumpur, offering retail convenience, quality amenities, pedestrian and bicycle-friendly environments, vibrant nightlife, and a strong neighbourhood character. The township borders Ampang, a prime district within Kuala Lumpur and its bustling neighbourhood, Ulu Klang. Conveniently located only 7 minutes away from Kuala Lumpur City Centre and 12 minutes to major areas such as Hartamas, Damansara and major highways, Ampang Ukay offers multiple access points and endless connectivity to its residents. This massive undertaking is intended to make available a series of successive developments bringing superior quality residential and commercial offerings that will transform Ampang Ukay towards a new-age dimension; at the best value in this prestigious part of town.