Ekovest posts flat 1Q net profit

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KUALA LUMPUR (Nov 28): Ekovest Bhd, controlled by tycoon Tan Sri Lim Kang Hoo, reported a flat net profit for the first financial quarter ended Sept 30, 2017 (1QFY18), as higher sales recognition from its property development projects was offset by lower profits from its construction operations.

Net profit came in at RM39.91 million in 1QFY18 compared with RM40.1 million a year ago. Earnings per share remained unchanged at 1.87 sen.

Quarterly revenue rose 13.3% to RM230.64 million from RM203.55 million in 1QFY17, mainly due to higher revenue from the construction and property development business segments.

As for its toll operations sector, it registered a 6% year-on-year increase in revenue to RM31.294 million in 1QFY18 mainly due to higher traffic volume during the Hari Raya Aidilfitri celebration in July.

On prospects, Ekovest expects the ongoing construction of the Setiawangsa-Pantai Expressway, the River of Life and related projects, the opening of the Duke Phase-2’s toll revenue and the recognition of unbilled sales from property development activities to contribute positively to the group's turnover and profitability
in the current financial year ending June 30, 2018 (FY18).

"Barring any unforeseen circumstances, the board is confident that the group’s performance would remain satisfactory for FY18," it said.

Ekovest shares closed down one sen or 1.04% at 95 sen today, with 4.84 million shares done, bringing a market capitalisation of RM2.03 billion.