Ekovest 4Q net profit plunges 86% on lower fair value gain on investment properties

KUALA LUMPUR (Aug 31): Ekovest Bhd has reported an 86.48% lower net profit for the fourth quarter ended June 30, 2017 (4QFY17), which stood at RM18.42 million, compared with RM136.17 last year on lower recognition of fair value adjustment for investment properties.

In a filing to Bursa Malaysia yesterday, the company said it recorded a lower fair value gain on investment properties of RM1.6 million against RM123.01 million in 4QFY16.

Earnings per share for 4QFY17 were at 0.86 sen compared to 15.92 sen a year ago.

Its quarterly revenue was, however, up 9.41% to RM318.45 million from RM291.07 million last year.

Ekovest said the increase in the revenue for the reporting period was mainly due to the preliminary and construction work for Setiawangsa-Pantai Expressway (SPE).

"Higher sales recognition for EkoCheras project coupled with advanced progress work has also contributed to a higher revenue from the property development segment," Ekovest added.

For the full year (FY17), its net profit fell 28.83% to RM110.6 million or 5.17 sen a share from RM155.41 million or 7.27 sen a share, in the previous year. Its revenue grew 37.19% to RM1.09 billion from RM793.58 million last year.

In a separate statement today, its managing director Datuk Seri Lim Keng Cheng said: "The board expects the ongoing construction of SPE, River of Life and related projects, the opening of the DUKE Phase-2's toll revenue and the recognition of unbilled sales from property development activities to contribute positively to the group's turnover and profitability in the coming financial year."

"We believe that the group performance would remain satisfactory in the coming financial year barring any unforeseen circumstances," said Lim. — theedgemarkets.com

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