EcoFirst's 1Q profit soars over 11 times; plans project adjustments to counter SST impact

• The improved earnings were attributed to accelerated progress billing for the KL 48 project, as well as lower administration expenses and finance costs.

KUALA LUMPUR (Oct 28): Property developer EcoFirst Consolidated Bhd (KL:ECOFIRS) said it is looking at making adjustments to its development plans to avoid price hikes and address the impact of the sales and service tax (SST).

The 6% SST on certain construction materials and construction services from July this year may lead to higher home prices, lower margins and a potential market slowdown, the group said in a bourse filing on Monday.

“The new tax will increase the financial burden on developers already paying indirect taxes on materials, services and labour, forcing a review of the project timelines and prices of its ongoing and future development plans,” it added.

The strategic decision was announced as the developer reported a net profit of RM10.48 million for the first quarter ended Aug 31, 2025 (1QFY2026), over 11 times the RM946,000 it made a year earlier, as revenue jumped 87.3% to RM123.45 million from RM65.92 million.

The improved earnings were attributed to accelerated progress billing for the KL 48 project, as well as lower administration expenses and finance costs. No dividend was declared for the quarter under review.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.