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Ecofirst 2Q net profit halves on-year amid lower billings

KUALA LUMPUR (Jan 23): Ecofirst Consolidated Bhd's net profit fell 55% to RM5.23 million or 0.65 sen per share in its second quarter ended Nov 30, 2016 (2QFY2017), from RM11.74 million or 1.61 sen per share a year earlier (2QFY2016), as topline declined 49%.

Revenue came in at RM12.07 million, compared with RM23.63 million a year ago, its bourse filing today showed.

For the cumulative six months (1HFY2017), net profit shrank 53% to RM6.56 million from RM14.08 million in 1HFY2016, while revenue for the period fell 37% to RM29.61 million from RM46.96 million.

Ecofirst said the lower performance for the cumulative period was due to lower billings from the Upper East @ Tiger Lane project, and higher marketing costs incurred for the early stages of Phase 1 of the Ampang Ukay project.

“The lower profit before tax from the property development division was mitigated by the recovery of long outstanding debts, which were previously provided and now written back,” it said.

Going forward, the group expects positive contribution from higher billings and additional sales for the Upper East project in Ipoh, Perak, which is targeted for completion by March 2017.

Meanwhile, it said rental income under its property investment division is expected to continue as a recurring income source.

For Ampang Ukay, Ecofirst said the sales launch for the first phase of the project, Liberty Arc @ Ampang Ukay, will be in March, with profit contribution by the last quarter of its current financial year ending May 31, 2017 (FY2017).

Ecofirst closed unchanged at 27 sen, giving it a market capitalisation of RM216.85 million. — theedgemarkets.com

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