EcoFirst swings back into the black in 4Q

KUALA LUMPUR (July 29): EcoFirst Consolidated Bhd swung back into the black in its fourth quarter ended May 31 (4QFY15), with a net profit of RM4.68 million or 0.64 sen per share, mainly due to higher income from its retail malls and its condominium development in Ipoh, Perak, known as "Upper East @ Tiger Lane".

It reported a net loss of RM3.89 million or 0.6 sen per share in 4QFY2014, its filing to Bursa Malaysia yesterday showed.

Revenue was up 560.64% to RM42.06 million, mainly from the recurring income from the two retail malls of the group and the Upper East @ Tiger Lane, in Ipoh, which is progressing according to schedule.

The better quarterly results notwithstanding, its net profit for the full FY2015 fell 79.63% to RM6.13 million or 0.87 sen per share from RM30.11 million or 4.63 sen per share a year ago.

In a filing with Bursa Malaysia yesterday, EcoFirst noted the previous year’s profit has included waivers of loans and interest arising from a debt restructuring exercise.

Revenue, however, was up over three times to RM81.2 million from RM24.45 million in FY2014.

Operationally, EcoFirst said it performed better in FY2015 as reflected in the higher gross profit of RM34.3 million as compared to RM14 million in FY2014.

Moving forward, EcoFirst said rental income from the two retail malls will continue to form a substantial source of recurring income for the group.

It said the Upper East @ Tiger Lane project is also expected to contribute significantly to the group’s performance in the ensuing period as construction works progress accordingly and sales of the property increase.

It also said it is increasing its land bank to 86.67 acres of prime freehold land in Klang Valley for future development, which augurs well for the long-term future of the group.

EcoFirst closed 0.5 sen or 1.75% to 28 sen yesterday, for a market capitalisation of RM204.44 million.