EcoFirst swings to profit in 3Q on KL-48 progress

• Revenue jumped 162.92% to RM119.06 million from RM45.28 million, primarily due to the accelerated work progress of the KL-48 development. No dividend was declared for the period under review.

KUALA LUMPUR (April 29): Property developer EcoFirst Consolidated Bhd (KL:ECOFIRS) swung to a net profit in the third quarter ended Feb 28, 2025 (3QFY2025), driven by stronger progress in its KL-48 project, which lifted revenue.

The group reported a net profit of RM6.32 million for 3QFY2025, compared with a net loss of RM5.48 million in the same quarter last year, its bourse filing on Tuesday showed.

Revenue jumped 162.92% to RM119.06 million from RM45.28 million, primarily due to the accelerated work progress of the KL-48 development. No dividend was declared for the period under review.

For the nine months ended Feb 28, 2025, EcoFirst posted a net profit of RM10.65 million, against a net loss of RM28.87 million for the corresponding nine months last year, as revenue surged 277.94% to RM294.52 million from RM77.93 million on higher work progress on the development project.

The company attributed the turnaround in its bottom line to the absence of a RM15.18 million inventory write-down.

"The future revenue from the sold units of KL-48 stands at RM437.01 million and the remaining unsold units of this project of RM98.56 million could provide the group with near-term future earnings and better cash vicinity to fuel the rollout of new projects and attractive land bank acquisition, with more project launches underway in the near term to meet the growing demand for affordable and high-quality residential properties in prime locations," it said on its prospects.

The group's planned sale launches for FY2025 involve a "diverse series of affordable high-rise homes and offices with right sizes and attainable built-up with an estimated net development value of RM411 million", subject to the completion of its acquisition of a plot of land in Kajang and approval from authorities.

"Planning likewise continues for our remaining land bank of approximately 67 acres of prime freehold land in Ampang Ukay. The group intends to launch multi-facets township development with an estimated gross development value of more than RM8 billion upon approvals received from the relevant authorities for the master development plan," it said.

The first phase sale will likely be launched in the fourth quarter of 2026. "This flagship development is intended to drive EcoFirst's prospects over the next 10 years," it added.

On Tuesday, shares of EcoFirst closed unchanged at 41 sen, giving the group a market capitalisation of RM495.2 million. The counter is up about 8% since the start of the year.

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