Encorp’s 2Q net loss widens to RM2.35m despite higher revenue

PETALING JAYA (Aug 20): Encorp Bhd’s net loss attributable to shareholders widened to RM2.35 million for the second quarter ended June 30, 2026 (2QFY2026), from RM1.69 million a year earlier, even as revenue rose on higher contributions from its property development and construction segments.

Revenue increased 8.1% year-on-year to RM34.26 million from RM31.69 million, while loss before tax widened to RM4.24 million from RM1.59 million. Basic loss per share widened to 0.74 sen from 0.53 sen.

In a Bursa Malaysia filing on Thursday (Aug 20), the property developer said higher quarterly revenue was driven by its construction and property development segments.

Encorp said property development revenue increased 10% to RM20.3 million in 2QFY2026 from RM18.3 million a year earlier, with most sales in the latest quarter contributed by the Tilia project in Cahaya Alam, Shah Alam.

In the corresponding quarter a year earlier, the segment’s revenue included RM10 million from Encorp Marina and RM7.6 million from Tilia, as well as smaller contributions from Lamanda Chuping Phase 1 and Cahaya Kristal.

Tilia completion lifts sequential revenue

Compared with the preceding quarter, Encorp’s group revenue rose 146%.

The group said property development revenue grew 332%, or RM15.6 million, quarter-on-quarter, mainly due to RM18 million in higher revenue from Tilia. The project achieved completion in 2QFY2026 and comprises 112 two-storey superlink homes in Cahaya Alam.

Construction revenue rose to RM6.6 million from RM500,000 in 1QFY2026, which Encorp attributed mainly to revenue recognition from Tilia after it obtained its certificate of completion and compliance (CCC), as well as replanting and logistics activities.

Meanwhile, the investment property segment’s revenue increased 25% year-on-year from RM2.1 million in 2QFY2025, a RM500,000 increase. Encorp attributed this mainly to Strand Mall’s occupancy rising to 81% from 76% a year earlier.

The segment’s loss before tax narrowed to RM4.3 million from RM5.1 million.

Concession revenue, however, fell by about 33% to RM5.1 million from RM8.1 million a year earlier. Encorp said concession income is payable by the government following the completion and handover of teachers’ quarters clusters under the privatisation agreement, with the group compensated through deferred payment income that is recognised as revenue.

First-half loss widens

For the six months ended June 30, Encorp’s net loss attributable to shareholders widened to RM7.58 million from RM4.64 million in the corresponding period a year earlier, while revenue declined 4.3% to RM48.24 million from RM50.43 million.

As at June 30, the group’s investment properties were carried at RM310 million, unchanged from Dec 31, 2025. Land held for property development stood at RM29.28 million, while property development costs were RM19.22 million.

Total loans and borrowings amounted to RM305.02 million, comprising RM174.52 million classified as current and RM130.50 million as non-current. Net assets per share attributable to owners of the parent stood at RM1.01, compared with RM1.02 at end-2025.

Encorp said the next RM60 million principal and profit payment under the Sukuk Murabahah issued by subsidiary Encorp Systembilt Sdn Bhd is scheduled for November 2026. The company said the sukuk has no financial recourse to the group.

No material update on KBI Properties MoU

In a separate Bursa Malaysia filing dated Aug 20, Encorp said there had been no material update or development concerning its memorandum of understanding (MoU) with KBI Properties Sdn Bhd since its previous announcement on May 13.

The company said it would make an appropriate announcement should there be any material development relating to the MoU, in accordance with Bursa Malaysia’s Main Market Listing Requirements.

The board did not recommend a dividend for 2QFY2026.

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