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Ekovest 2QFY20 net profit down 34%

KUALA LUMPUR (Feb 25): Ekovest Bhd saw its net profit fall 33.9% to RM29.03 million for the second financial quarter ended Dec 31, 2019 (2QFY20) from RM43.91 million a year ago, due to completion of certain construction works which have a better profit margin.

This resulted in lower earnings per share of 1.09 sen for 2QFY20, compared with 2.05 sen for 2QFY19.

Revenue for the quarter, however, rose 6.4% to RM384.31 million from RM361.18 million a year ago, thanks to higher construction work done recognised for the Duke Phase 3 project.

Nevertheless, the group managed to post a 5.2% increase in net profit for the first half ended Dec 31, 2019 (1HFY20) to RM92.35 million from RM87.78 million a year ago, while revenue grew 9.8% to RM731.12 million in 1HFY20, from RM666.07 million in 1HFY19.

On prospects, Ekovest is confident that the group’s performance will remain satisfactory for the current financial year ending June 30, 2020 (FY20).

The group expects the ongoing construction of the Setiawangsa-Pantai Expressway, River of Life beautification packages, as well as toll revenue and the sales of completed properties units, to contribute positively to the group's turnover and profitability in FY20.

"The group is working closely with the government on various infrastructure projects which have been proposed to the government. Inaddition, the group is working together with local partners in Sabah and Sarawak to tender and secure construction contracts directly from the government. The board is hopeful of securing some of these projects," it said in a bourse filing today.

Ekovest shares closed up 1.5 sen or 2.19% at 70 sen today, with 15.38 million shares done, bringing a market capitalisation of RM1.86 billion.

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