Ekovest 3Q net profit largely flat on one-off expense

KUALA LUMPUR (May 30): Ekovest Bhd's third-quarter net profit was largely flat at RM11.06 million from RM11.08 million a year ago, mainly due to a one-off expense of RM22.62 million on recognition of fair value adjustment pursuant to the granting of the Employees' Share Option Scheme.

Ekovest said lower contribution from the preliminary and enabling work for the Setiawangsa-Pantai Expressway (SPE) has also resulted in lower profit in the three months ended March 31, 2017 (3QFY17).

Earnings per share remained unchanged at 0.52 sen.

Quarterly revenue rose 57.9% to RM291.75 million in 3QFY17 from RM184.77 million in 3QFY16, mainly due to the commencement of preliminary and construction work for SPE.

In a filing with Bursa Malaysia today, Ekovest said higher sales recognition from the EkoCheras project, coupled with advanced progress work, has also contributed to higher revenue from the property development segment.

For the cumulative nine months (9MFY17), the group's net profit increased 4.5 times to RM92.19 million from RM20.27 million in 9MFY16, while revenue rose 53.3% to RM770.26 million from RM502.51 million.

On prospects, Ekovest said it expects the ongoing construction of the Duta-Ulu Klang Expressway Phase 2 and SPE, toll revenue and the recognition of unbilled sales from property development activities to contribute positively to the group's turnover and profitability in the current financial year ending June 30, 2017 (FY17).

"Barring any unforeseen circumstances, the board is confident that the group's performance would be much better for FY17 compared with the previous financial year," it added.

Ekovest shares closed unchanged at RM1.23 today, with 3.09 million shares done, bringing it a market capitalisation of RM2.63 billion. Year to date, its share price has risen 29.5%. — theedgemarkets.com

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