Focus Malaysia 24 Apr 2019 14:44
PROPERTY development group EcoFirst Consolidated Bhd (EcoFirst) saw its third quarter net profit more than triple to RM6.7 million, boosted by contributions from the first phase of its flagship Ampang Ukay development, LIBERTY@Ampang Ukay (Liberty).
For the third quarter ended 28 February 2019, EcoFirst’s profit before tax also more than doubled to RM8 million, following a 63 percent jump in revenue to RM57.5 million.
“Our continued profitability shows that we are in a solid position for organic growth moving forward, despite the general slowdown in property,” said Dato’ Tiong Kwing Hee, Group Chief Executive Officer.
Organic growth drove its cumulative nine-month operational profit to RM15.5 million soared by 74 percent from RM8.9 million posted in the previous corresponding period, after adjusting for a one-off gain from the Government’s compulsory acquisition of land in December 2017. Recurring income from its retail mall, South City Plaza also contributed to its improved performance.
“With Liberty almost fully sold, we’ve proven our ability to design and build products that meet customer’s demands. We are now preparing for Phase 2 which will comprise of lower density condominiums offering larger-sized units that would suit young growing families,” Tiong said.
“Leveraging on Ampang Ukay’s strategic location and excellent connectivity, we believe that there will be strong demand for Phase 2. We target to launch in early 2020 and we expect Phase 2 to build on the success of Liberty.”
While Ampang Ukay remains EcoFirst’s main growth driver, the Group is also looking to expand its development activities by targeting opportunities to develop small pockets of land in prime, affluent neighbourhoods.
In December 2018, it had proposed to take a 70 percent stake in the Lone Pine group’s Geo Valley Sdn Bhd, which is developing a RM1.25 billion GDV mixed residential and commercial project in Paya Terubong.
This joint venture with the Penang-based Lone Pine group, which developed the award-winning One Tanjong luxury seafront condominium in Tanjung Bungah, is part of EcoFirst’s strategy to partner reputable and well-known brands for more impact that will boost EcoFirst’s bottom-line over the short and medium term.