Encorp 4Q net profit up 280% on higher progress of development work

KUALA LUMPUR (Feb 24): Encorp Bhd’s net profit jumped 280% to RM16.76 million in the fourth quarter ending Dec 31, 2016 (4QFY2016) from RM59.26 million a year ago, as revenue climbed on higher progress of works achieved by its property division.

Revenue was up 147% to RM146.34 million from RM59.26 million, its bourse filing showed.

For the full year, net profit jumped over 20 times to RM28.53 million from RM1.38 million a year ago, while revenue grew 72% to RM360.82 million from RM209.89 million.

In a statement today, Encorp's management said the group's transformation journey, which it embarked on since 2014, is starting to bear fruit.

“Under the close guidance from the board of directors, the management has worked tirelessly to grow and strengthen Encorp’s core business divisions — property development, construction management, facilities management and investment property,” it said.

Going forward, the board remains upbeat on the group’s outlook. The management is currently working on "several exciting opportunities" in the pipeline.

“Overall, property development shall remain Encorp’s key focus but at the same time, management sees great potential in construction management and facilities management.

"A key focus for the group’s property division this year is the development of Bukit Katil township. Management is working on finalising some details on the project and shall be revealing more in due time,” the group added.

It announced last year the integrated township carried a gross development value of RM3.2 billion, and that it would be developed in three phases.

Separately, it said today that in a Bursa Malaysia letter dated Aug 18 2016, it had been granted nine more months till April 9, 2017 to comply with its public shareholding spread requirement, which stood at only 14.77% as at Feb 21, below the minimum 25%.

"The company is considering various options to address the shortfall in the public shareholding spread which may include, inter-alia, a private placement of new Encorp shares by Encorp and/or secondary placement of existing Encorp shares by certain shareholders of Encorp," it added.

Shares of Encorp closed 0.5 sen or 0.8% lower at 61 sen yesterday, for a market capitalisation of RM168.35 million. — theedgemarkets.com

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