Ekovest’s gross profit surges 9.4 per cent to RM98.97 million
KUCHING: Ekovest Bhd ( Ekovest) announced a gross profit of RM98.97 million for its 4th quarter financial year ended 30 June 2017 (4QFY17), representing a 67 per cent increase from RM59.16 million in the corresponding period last year.
Its revenue stood at RM318.45 million, a 9.4 per cent increase as compared to RM291.07 million a year ago.
A filing to Bursa Malaysia showed that the increase in the revenue and profit for the reporting quarter was mainly due to higher revenue contribution from the construction segment. For financial year ending 30 June 2017 ( FY17), Ekovest registered a revenue of RM1.08 billion as compared to RM793.58 million. The increase in the revenue for reporting period was mainly due to preliminary and construction work for Setiawangsa-Pantai Expressway ( SPE). Higher sales recognition for EkoCheras project coupled with advanced progress work has also contributed to a higher revenue from the property development. Its profit before tax (PBT) stood at RM181.72 million, as compared to RM190.95 million in the previous financial year. The lower PBT was mainly due to the recognition of fair value adjustment for investment properties of RM123.01 million in the prior year. In the previous financial year, its PBT will stand at RM68 million if without the recognition of fair value adjustment for investment properties. Moreover, there is a one- off expense in the current financial year amounting to RM22.62 million pursuant to the granting of the Employee’s Share Option Scheme on March 9, 2017.
Commenting on the latest financial result, Ekovest Berhad Managing Director Datuk Seri Lim Keng Cheng said: “The Board expects the ongoing construction of the SPE and other River of Life related projects and the opening of the DUKE Phase 2’s toll revenue.
“The recognition of unbilled sales from property development activities will contribute positively to the Group’s turnover and profitability in the coming financial year.
“We believe that the Group performance would remain satisfactory in the coming financial year barring any unforeseen circumstances.”
“On Monday, the first phase of the River of Life River Beautification and Kolam Biru project was launched by our Prime Minister Datuk Seri Najib Tun Razak.
That is a significant milestone for Ekovest as it accelerates the beautification of the ROL and provides savings to the government and project.
“We would like to thank all our staff that work relentlessly for this project that competed 4 days ahead for a 18-week project schedule,” Lim added.
Kolam Biru, which is a local product, design and built by local consultants and contractors.
It enhances the focal point of Masjid Jamek, incorporating cooling and aesthetic effects created by the water jetting and fogging system. It also encourages water touching experience, increases tourist attraction and complementing the existing beautification works and river cleaning programme.
Ekovest incorporates a “L Wall” structure that supports the boardwalk and blue corridor, which provides a better construction solution as compared to the original design. With prompt action by Ekovest Berhad, we design and build an external support that hold both boardwalk and blue corridor.
“Apart from the Kolam Biru project, Ekovest have also managed to provide cost savings by introducing an enhanced design for the interceptor system.
The interceptor treats the sullage and wastewater coming from the commercial premises and buildings before being released as Class IIb water into the river, as well as collecting the unconnected sullage water from the existing individual premises and non-point source polluted water,” Lim added.