Ecobuilt seeks foray into property development, trading of building materials

KUALA LUMPUR (April 13): Ecobuilt Holdings Bhd (KL:ECOHLDS) has proposed to diversify into property development as well as the trading of building materials, a move that the company expects to contribute at least 25% of its net profit in the future.

UOB Kay Hian Securities has been appointed as the adviser for the proposed diversification.

According to its bourse filing on Friday, Ecobuilt intends to incorporate and commence the operation of new subsidiaries to undertake each of the diversification upon shareholders’ approval.

“The board further believes that the proposed diversification may allow the group to leverage on its existing experience, industry knowledge and networks within the construction sector, and provide greater flexibility to pursue opportunities across different stages of the construction and property value chain,'' said Ecobuilt in its statement.

The construction works operator said the diversification will complement its construction business, thus reducing reliance on any single business segment.

Still, Ecobuilt flagged the risk that the property development and construction business is subject to various laws, regulations and requirements imposed by governmental and regulatory authorities. In addition, the trading of building materials business may be subject to regulatory requirements relating to business registrations, import or distribution approvals and product standards.

The group said it currently has an outstanding unbilled order book of approximately RM196.8 million. This comprises the Riveria Phase 2 project in Brickfields (RM165.07 million) and Seiring-Block D in Shah Alam (RM31.73 million).

As at Nov 30, 2025, the group was in a net debt position of RM2.03 million, with borrowings of RM3.37 million exceeding cash and cash equivalents of RM1.35 million.

The company has been in red since FY2022.

As at market close on Friday, Ecobuilt’s share price was unchanged at 5.5 sen for a market capitalisation of RM23.1 million.

..........

Get EdgeProp's montly print edition! Free delivery is available for selected regions. Subscribe now.