Ekovest narrows 4Q net loss to RM64.9m

• No dividend was declared for the year. Ekovest last paid a dividend in FY2020.

KUALA LUMPUR (Aug 30): Ekovest Bhd (KL:EKOVEST) narrowed its net loss to RM64.87 million for its fourth quarter ended June 30, 2024 (4QFY2024) from RM95.66 million a year earlier, helped by a turnaround in the performance of its associate.

The associate's share of profit of RM9.85 million compares with a loss of RM117,000 previously, according to the financial results filed with the stock exchange on Friday.

Additionally, the group experienced lower tax expenses of RM18.72 million compared with RM51.3 million in 4QFY2023.

Revenue for the quarter decreased 3.18% year-on-year to RM270.45 million from RM279.33 million, mainly due to lower revenue from the construction segment following the completion of the Setiawangsa-Pantai Expressway (SPE), as well as from the food and beverage division, where eight outlets were closed to make way for a new approach in franchising and licensing.

However, this was offset by strong performances from the property development, toll operations, plantation and property investment segments.

For the full year, Ekovest widened its net loss to RM122.95 million from RM111.12 million in FY2023, marking the group's third consecutive year in the red. Full-year revenue, in contrast, rose 2.59% to RM1.15 billion from RM1.12 billion.

No dividend was declared for the year. Ekovest last paid a dividend in FY2020.

On prospects, Ekovest noted a steady increase in toll revenue for phases one and two of the Duke Highway following the lifting of the Movement Control Order in October 2021, coupled with the full opening of SPE in November 2023.

This is expected to further improve toll collection revenue under this operating segment. However, financing costs for SPE will no longer be capitalised in the financial statements, the group said.

Ekovest added that it plans to launch a new property development, EkoTitiwangsa, by November 2024.

For the construction segment, Ekovest anticipates that the ongoing rationalisation of the construction scope under the RTS Link project, along with the development of EkoTitiwangsa, will positively impact the group’s future construction revenue and earnings.

“In addition, the group is continuously working closely with the government on various infrastructure projects,” it said.

As for its plantation segment, Ekovest said PLS Plantations Bhd will maintain its current rehabilitation and sanitation efforts, focusing on recommended plantation practices to enhance the yield of its oil palm estates, mature durian plantations and contract farms.

In addition, PLS aims to work closely with its existing and potential business partners to improve the retail offtake rate and profit margins for downstream durian products among offshore wholesalers and end consumers.

“Concurrently, upstream investment in durian plantation will continue to be a mainstay of PLS to complement its existing downstream business while waiting for PLS’ durian farm to be matured and fruitful in three to four years. This is in line with the long-term group strategy to expand and diversify into other businesses to reduce dependency and reliance on our existing businesses in construction and property development,” it added.

Ekovest’s share price, which has fallen over 29% year to date, closed unchanged at 36 sen on Friday, giving the group a market capitalisation of RM1.07 billion.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!