KUALA LUMPUR: Ekovest Bhd saw its net profit fall 33.9% to RM29.03 million for the second financial quarter ended Dec 31, 2019 (2QFY20) from RM43.91 million a year ago, due to completion of certain construction works which have a better profit margin.

This resulted in a lower earnings per share of 1.09 sen for 2QFY20 compared with 2.05 sen for 2QFY19.

Revenue for the quarter, however, rose 6.4% to RM384.31 million from RM361.18 million a year ago, thanks to higher construction work done recognised for the Duke Phase 3 project.

The group managed to post a 5.2% increase in net profit for the first half ended Dec 31, 2019 (1HFY20) to RM92.35 million from RM87.78 million a year ago, while revenue grew 9.8% to RM731.12 million in 1HFY20 from RM666.07 million in 1HFY19.

On prospects, Ekovest is confident the group’s performance will remain satisfactory for the current financial year ending June 30, 2020 (FY20).

The group expects the ongoing construction of the Setiawangsa-Pantai Expressway, River of Life beautification packages, the toll revenue and the sales of completed properties units to contribute positively to the group’s turnover and profitability in FY20.

“The group is working closely with the government on various infrastructure projects which have been proposed to the government. In addition, the group is working together with the local partners in Sabah and Sarawak to tender and secure construction contracts directly from the government. The board is hopeful of securing some,” it said in a bourse filing yesterday.

Separately, Ekovest also announced the resignation of executive director Lim Chen Herng, son of Tan Sri Lim Kang Hoo, citing other work commitment.

According to the group’s Annual Report 2019, Chen Herng, 33, was appointed to the board of directors of Ekovest on Feb 27, 2014 as an alternate director to Kang Hoo. He was redesignated to the role of executive director on April 10, 2018.

He has been with the family business since 2008, with management exposure in property development, construction, finance and oil and gas industries. Currently, he is an executive director of Knusford Bhd and an alternate director at Iskandar Waterfront City Bhd.

He also sits on the board of several private limited companies, most notably the master developer Iskandar Waterfront Holdings Sdn Bhd. He is currently an alternate director to Kang Hoo at PLS Plantations Bhd.