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Friday, February 24, 2017

Ekovest 2Q net profit jumps 6.6 times, driven by construction segment


By Sulhi Azman / theedgemarkets.com | February 24, 2017 : 7:14 PM MYT

KUALA LUMPUR (Feb 24): Ekovest Bhd, co-founded and controlled by tycoon Tan Sri Lim Kang Hoo, saw its net profit jump 6.6 times to RM41.03 million or 4.8 sen per share in the second financial quarter ended Dec 31, 2016 (2QFY17) from RM6.19 million or 0.72 sen per share a year ago, on higher revenue contribution from its construction segment — which was driven by the Duta-Ulu Kelang Expressway (DUKE) Phase 2 project and the commencement of preliminary and construction work for Setiawangsa-Pantai Expressway (SPE).

Revenue also rose 49.8% to RM274.96 million in 2QFY17 from RM183.57 million in 2QFY16.

The strong second-quarter results boosted Ekovest's net profit for the cumulative six months (6MFY17) to RM81.13 million or 9.48 sen a share, surging 8.8 times from RM9.19 million or 1.07 sen a share in 6MFY16, while revenue increased 50.6% to RM478.5 million in 6MFY17 from RM317.75 million a year ago.

In a separate statement today, Ekovest managing director Datuk Seri Lim Keng Cheng said it expects the ongoing construction of the DUKE Phase-2 project, toll revenue and the recognition of unbilled sales from property development activities to continue contributing to the group's revenue and profit in the current financial year ending June 30, 2017 (FY17).

"The recently awarded master contract for SPE amounting to RM3.96 billion to Ekovest is also expected to contribute to the group's turnover and profitability," he said.

Keng Cheng added that barring any unforeseen circumstances, the group is confident its performance would be better for FY17 compared with the previous financial year.

Ekovest shares closed down 5 sen or 4.31% at RM1.11 today, bringing it a market capitalisation of RM2.37 billion.

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