Deferment of new launches drags EcoFirst into 4Q loss

Deferment of new launches drags EcoFirst into 4Q loss
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KUALA LUMPUR (July 29): EcoFirst Consolidated Bhd slipped into a net loss of RM4.38 million or 0.39 sen per share in the fourth quarter ended May 31, 2022 (4QFY22), as compared to a net profit of RM15.95 million or 1.93 sen per share a year ago.

In a filing with Bursa Malaysia on Friday (July 29), the property developer said its weaker financial performance was mainly due to deferment in the launching of new developments, pending approval from relevant authorities.

Revenue for the quarter under review fell 43% year-on-year to RM7.85 million, down from RM13.85 million in 4QFY21.

For the full FY22, the group incurred a net loss of RM9.95 million, versus a net profit of RM14.01 million in FY21; while revenue also fell 43% to RM24.04 million from RM42.37 million.

Going forward, EcoFirst said the outlook for the property development sector remained challenging during the transition to the endemic phase of the prolonged Covid-19, coupled with the onset of inflation felt in the global market.

“Despite the challenges faced by EcoFirst group and the property development sector at large, the group is targeting to launch its Sungai Besi project by end of 2022, with an estimated gross development value exceeding RM900 million.

“[With] the strategic location of the Sungai Besi project, coupled with attractive products and pricing, the group is optimistic of its prospects moving forward,” it said.

Shares of EcoFirst closed half a sen or 1.3% lower at 38 sen per share on Friday, giving it a market capitalisation of RM446.93 million.

Liew Jia Teng