Ecofirst Consolidated Bhd Reports Impressive Q4 Results Fueled by KL-48 Project Sales
Property developer Ecofirst Consolidated Bhd (KL) has announced a remarkable increase in its net profit for the fourth quarter, largely attributed to the higher sales conversion rate for its KL-48 project in Chan Sow Lin, Kuala Lumpur. The net profit for the three months ending May 31, 2024 (4QFY2024), more than doubled to RM41.51 million compared to RM17 million in the same period last year. Meanwhile, the revenue for the quarter surged nearly fivefold year-on-year to RM87.86 million from RM17.84 million.
Strong Sales Performance of KL-48 Project
The significant growth in net profit and revenue can be credited to the successful sales performance of the KL-48 project. The project achieved an impressive sales conversion rate of over 80%, and the site work progress reached over 22% as of May 31, 2024. Ecofirst’s strategic focus on boosting property sales for KL-48 has proven effective, demonstrating the project’s strong market appeal.
Optimistic Outlook and Strategic Location
Ecofirst Consolidated Bhd is optimistic about the prospects of the KL-48 project, which boasts an estimated gross development value of about RM1 billion. The project’s strategic location, coupled with attractive pricing and well-designed products, positions it favorably in the market. The group is committed to further increasing property sales for KL-48 and continues to scout for development-ready land to enhance future performance.
Exploring New Business Opportunities
In addition to focusing on the KL-48 project, Ecofirst is exploring other business opportunities, including joint ventures with landowners for property development and the potential rejuvenation of abandoned projects. This strategic diversification aims to bolster the group’s growth and expand its development portfolio.
Full Financial Year Results
Despite the impressive quarterly performance, Ecofirst reported a 12% decline in net profit for the full financial year, with a net profit of RM12.64 million compared to RM14.37 million in the previous year. This decline was primarily due to a provision made for the writedown of an asset worth RM15.18 million due to unfavorable market conditions and higher administrative expenses. However, the group’s revenue for FY2024 saw a substantial increase, leaping 427% to RM165.79 million from RM31.46 million. This significant revenue growth was mainly driven by the additional contributions from the work done on the KL-48 project.
Future Prospects
Looking ahead, Ecofirst Consolidated Bhd remains committed to driving growth through strategic project developments and exploring new opportunities in the property market. The group’s focus on the KL-48 project and its proactive approach to identifying new development ventures underline its dedication to enhancing its market presence and delivering value to its stakeholders.
In summary, Ecofirst’s impressive Q4 performance and optimistic outlook for the KL-48 project highlight its strategic execution and strong market positioning. The group’s continued efforts to expand its development portfolio and explore new business opportunities will be pivotal in sustaining its growth momentum in the coming years.
