Ekovest narrows 3Q net loss on lower deferred tax expense

• On prospects, Ekovest highlighted steady revenue growth from toll collections on Phases 1 and 2 of the Duke Highway and expects to gain further from the full opening of the SPE Highway.

KUALA LUMPUR (May 27): Ekovest Bhd (KL:EKOVEST) reduced its net loss to RM9.75 million for its third quarter from RM11.11 million a year earlier, on reduced deferred tax expense and higher revenue from toll operations and property development.

The group's deferred tax expense fell to RM1.79 million for the third quarter ended March 31, 2025 (3QFY2025) from RM9.18 million previously.

Additionally, the group experienced lower tax expenses of RM885,000 compared with RM2.14 million in 3QFY2024.

Revenue for the quarter rose 1.56% year-on-year to RM311.24 million from RM306.46 million, mainly supported by higher contributions from the property development segment—driven by the completion and sale of remaining units in the EkoCheras development—and toll operations, which benefited from improved collections on the SPE Highway following a steady increase in traffic volume since its opening in November 2023.

Additionally, during the quarter, the toll segment recognised RM66.73 million in toll compensation revenue related to the government’s freezing of toll rate increases and toll exemptions during festive periods in 2023. This compares to RM57.55 million in toll compensation recognised in 3QFY2024, which pertained to similar measures implemented in 2022.

However, this was offset by the construction segment, plantation segment, property investment and others segment.

For the nine months ended March 31, 2025, Ekovest widened its net loss to RM78.76 million from RM58.09 million in the same period last year. Revenue declined 7.79% to RM807.16 million from RM875.36 million.

No dividend was declared for the year. Ekovest last paid a dividend in FY2020.

On prospects, Ekovest highlighted steady revenue growth from toll collections on Phases 1 and 2 of the Duke Highway and expects to gain further from the full opening of the SPE Highway.

However, financing costs for SPE will no longer be capitalised in the financial statements, the group said.

Ekovest added that its property development segment will be supported by the upcoming EkoTitiwangsa project, which is expected to drive future growth.

The group anticipates that the rationalisation of the RTS Link project's construction scope will enhance both revenue and earnings. Its construction pipeline is also expected to strengthen, following the government’s approval on May 5, 2025, for the proposed privatisation of Phase 1-Project LIKE and Phase 2-Project KBL.

As for its plantation segment, Ekovest said PLS Plantations Bhd is undergoing a transformation from a traditional, cyclical oil palm plantation business into a more diversified agribusiness, integrating both upstream and downstream activities.

A key element of this transformation is the commercial durian business, which naturally entails a longer gestation period as durian trees typically take four to five years to reach maturity, the group said.

Ekovest’s share price, which has fallen over 4% year to date, closed unchanged at 35.5 sen on Tuesday, giving the group a market capitalisation of RM1.05 billion.

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