EcoFirst 1Q18 earnings more than doubles on higher Ipoh property sales

KUALA LUMPUR (Oct 31): EcoFirst Consolidated Bhd’s first quarter ended Aug 31, 2017 (1QFY18) saw net profit risen 170.96% to RM3.6 million, from RM1.33 million a year ago, thanks to higher sales in its development project "Upper East" in Ipoh.

The gains, however, were mitigated by initial development and marketing costs incurred by another property project in Ampang, EcoFirst said in a bourse filing. Earnings per share (EPS) rose to 0.45 sen in the quarter, from 0.17 sen in 1QFY17.

In tandem with higher sales, EcoFirst’s quarterly revenue rose 155.36% to RM44.79 million, from RM17.54 million in the same quarter last year.

Despite the encouraging first quarter, EcoFirst expects moderating sales, moving forward. “With the Upper East project in Ipoh, Perak which had delivered its vacant possession in the current quarter, contribution is expected to be moderate in the ensuing period, as billings continue from the sales of remaining units to be sold,” the filing said.

“'Liberty' project in Ampang is expected to contribute positively to the Group’s performance in FY18, as construction works progress accordingly and sales of the property increase,” EcoFirst added.

Additionally, EcoFirst said rental income, going forward, will come solely from its Seri Kembangan South City Plaza, as sale of its retail mall in Segamat was completed on Sept 18. The Segamat mall still contributed rental income during Ecofirst’s 1QFY18 period.

At 5pm yesterday, shares of EcoFirst closed 1.61% or half a sen higher at 31.5 sen, giving it a market capitalisation of RM253 million. — theedgemarkets.com