Aims to Expand its Property Development Projects
KUALA LUMPUR, 25 January 2019: PROPERTY group EcoFirst Consolidated Bhd (EcoFirst) posted a 20 percent jump in revenue to RM102 million for the first half ended 30 Nov 2018, reflecting progress at its RM606.8 million Liberty project at Ampang Ukay which also boosted its core operating income.
It recorded a lower first half profit after tax of RM8.7 million, against RM35.3 million for the first half of 2017 which included RM28.4 million of gains from the compulsory acquisition of land for the Sg Besi Ulu Kelang Elevated (SUKE) Expressway.
Excluding gain from the compulsory acquisition, EcoFirst posted a 14 percent rise in core operating income to RM14.5 million, against RM12.7 million in the first half of 2017.
“The increase in our core operating income reflects our improving ability to generate organic growth,” said Dato’ Tiong Kwing Hee, EcoFirst Group Chief Executive Officer. “Liberty is progressing well according to schedule and we’re on track to meet its full completion in November 2019.”
Meanwhile, EcoFirst is broadening its development activities beyond Ampang Ukay, with a joint venture with the Penang-based Lone Pine group which developed the award-winning One Tanjong luxury seafront condominium in Tanjung Bungah.
EcoFirst in December 2018 proposed to acquire 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.
“While Ampang Ukay will remain the prime mover in EcoFirst’s growth over the long term, our strategy is to partner reputable and well-known brands such as the Lone Pine group for more impact over the short and medium term,” said Tiong. “We are assessing a number of other projects in the Klang Valley that will boost EcoFirst’s bottom-line in the next two to three years. We will make the necessary announcement once the deals are concluded in accordance to the Bursa listing guidelines.”
For the second quarter, EcoFirst posted a 42 percent rise in revenue to RM57.2 million, from RM40.4 million before. Its profit after tax fell to RM4.1 million the three months ended 30 Nov 2018, from RM29.6 million before which included the gains from the SUKE compulsory acquisition.