recorded a 20% lower net profit of RM5.36mil in the third quarter ended Feb 29, 2020 on the back of lower revenue as its Ampang Ukay development reached the tail-end of construction.In a statement, the property developer said revenue in the quarter fell 24.7% to RM43.3mil from the previous corresponding quarter.
Net earnings fell to 0.67 sen per share as compared to 84 sen per share in the same quarter last year.
Pre-tax profit however grew 10.8% to RM8.8mil in the quarter from RM8mil in the previous corresponding quarter due to higher profit recognition and development cost savings in the first phase of the Ampang Ukay project, Liberty @ Ampang Ukay.
For the nine months period to Feb 29, the group had a total net profit of RM14.99mil, which was 3% lower than in the previous corresponding period.
Revenue was 21.2% lower at RM125.7mil versus RM159.5mil in the comparative period due to lower property sales.
Moving forward, the group expects to remain profitable in its 2020 financial year ending May 31, 2020, as it makes preparations to launch new phases of its flagship Ampang Ukay development
The first phase of the development, which was launched in 2016, has recorded a take-up rate of 99%.
Ecofirst added that the South City Plaza mall is expected to contribute rental income despite the disruptions of the movement control order, and will see higher footfall with the addition of the upcoming Seri Kemabangan MRT line.
"On the corporate front, the Group will mitigate the challenging operating landscape by increasing its development efficiency to enhance turnaround time, and in turn boost cash flow generation for better resource mobilisation.
"Nevertheless, the Group will continue to identify prospective lands in strategic locations in Malaysia to be developed solely or in joint partnerships in order to sustain growth plans," it added.
At the close of Tuesday trading, Ecofirst's share price was one sen lower at 34 sen on the back of 283,000 units exchanging hands.