Ecofirst Consolidated Bhd's net profit for the fourth quarter ended 3 May 2024 (4QFY24) more than doubled to RM41.5 million from RM17 million in the previous year, driven by higher sales rates for the KL-48 project. The group reported that its revenue for the quarter increased nearly fivefold to RM87.86 million compared to RM17.84 million in 4QFY23.

The group noted that the sales conversion rate for the KL-48 project in Chan Sow Lin, Kuala Lumpur, exceeded 80%, with site work progress reaching over 22% as of 31 May 2024. With an estimated gross development value of around RM1 billion from the KL-48 project, Ecofirst expressed optimism about the development's prospects, citing its strategic location, attractive pricing, and good product features.

Ecofirst highlighted its focus on boosting property sales for KL-48 and its ongoing efforts to seek suitable land for future developments to enhance performance. The group also mentioned exploring other business opportunities, such as forming joint ventures with landowners for property development or considering the redevelopment of abandoned projects.

For the full financial year, Ecofirst's net profit declined by 12% to RM12.64 million from RM14.37 million in the previous year. This decline was primarily due to a provision made for an asset impairment amounting to RM15.18 million, caused by unfavourable market conditions, coupled with higher administrative expenses. However, revenue for FY24 surged nearly fivefold to RM165.79 million from RM31.46 million due to the additional work contributions on the KL-48 project.

Commenting on the outlook, the group said the overall residential property market is showing an increase in both transaction volume and value. This improvement is being achieved through cooperation with banks, offering more customer-focused products, and government initiatives aimed at promoting homeownership.

Source: DagangNews.com