ECOHLDS 0059 Share Price

The Group recorded a higher loss before tax of RM34.06 million in FYE 2023. This was mainly due to the realisation of bad debt written off amounting to RM9.15 million related to the de-consolidation of Gabungan Eko Construkt Sdn Bhd due to the loss of control over this subsidiary company as a liquidator has been appointed to undertake a winding-up proceeding. Reflecting on how we have weathered another challenging year, the Group remains cautiously optimistic about the
Group’s long-term prospects despite the on-going challenges such as acute labour shortage and construction material
price spike. Nevertheless, with the support by recent private placement, the Group is committed to continue deliver
quality projects so as to preserve the long-term values to our shareholders.

The Group had recorded a loss before taxation of RM2.12 million on the back of revenue RM51.52 million as compared to a loss before taxation of RM14.89 million and revenue of RM45.63 million reported in the immediate preceding quarter. The loss before taxation in the immediate preceding quarter were mainly due to the lower revenue recognition and increase in building raw material costs.

The Group had recorded a loss before taxation of RM0.95 million on the back of revenue RM50.52 million as compared to a profit before taxation of RM1.87 million and revenue of RM48.12 million reported in the immediate preceding quarter. The reduction in profit before taxation in current quarter were mainly due to the increase in building raw material costs, stemming from disruptions in the building materials supply chain.

The Group had recorded a profit before taxation of RM0.27 million on the back of revenue RM22.69 million as compared to a profit before taxation of RM1.95 million and revenue of RM61.18 million reported in the immediate preceding quarter. Both revenue and profit before taxation in current quarter were lower than the immediate preceding quarter mainly due to implementation of Full Movement Control Order (FMCO) in June 2021 resulted lower revenue recognition in current quarter

JF Apex Research expects Ecobuilt Holdings Bhd to be among the stocks to watch on Tuesday. Ecobuilt has secured a RM166.37mil contract to undertake a mixed commercial development project in Kota Kinabalu, Sabah.

The Group had recorded a loss before taxation from continuing oprerations of RM6.42 million in the current quarter under review compared with the profit before taxation from continuing operations of RM1.07 million reported in the immediate preceding quarter. The loss before taxation was mainly due to impairment loss on goodwill from the acquisition of the subsidiary company. The decrease in profit was also mainly due to all projects were halted as a results of MCO implemented by Malaysia Government on 18 March 2020 in response to Covid19 pandemic.

In Q2 ended 31 December 2019, the Group recorded a revenue of RM137.7 million compared to RM135.4 million in preceeding quarter. The revenue is dampened by a slower-than-expected infrastructure site activities and progress coupled with certain major property development projects at advanced stage of completion. The Group recorded a PBT of RM12.1 million for current quarter compared to RM12.0 million in preceding quarter. The increase in PBT was in line with the marginal increase in revenue.