EcoFirst expects better performance in FY16

SUBANG JAYA: Property developer EcoFirst Consolidated Bhd expects to see better performance for its financial year ended May 31, 2016 (FY16), mainly driven by its luxury condominiums project known as Upper-East@Tiger Lane in Ipoh, Perak.
Speaking after its EGM yesterday, the group CEO and executive director Datuk Tiong Kwing Hee said of the 529 units of the condominiums it offered, more than 80% have been taken up, to date.
He said the gross development value (GDV) of the project is about RM300 million.
"Hopefully, part (of the revenue contribution) will come from Ulu Kelang (project), as we will launch the project by end of this year," Tiong added.
EcoFirst's purchase of a 62-acres land worth RM145 million in Ulu Kelang from Zurich Insurance Malaysia Bhd have been delayed recently, due to technical issues on land alignment.
"There is a lot of confusion but we have actually managed to overcome all this thing. So this land (acquisition) will be completed soon, should be in the fourth quarter this year," Tiong said, adding that a commercial development and serviced apartments is planned on the land.
Commenting on its outlook, he said the softening property market and weaker local currency would not affect its business, given the strategic locations of its developments.
"I believe that if you are on the outskirts of Klang Valley, then there will be a problem," he added.
For financial year ended May 31, 2015 (FY15), the group's net profit decreased 79.64% to RM6.13 million, from RM30.11 million a year ago.
Tiong said its net profit in FY14 includes waivers of loans and interests, amounting to RM29.3 million, arising from a debt restructuring exercise.
Revenue for FY15 jumped 237.5% to RM81.2 million, compared with RM24.4 million previously.
Shareholders yesterday approved its proposal to acquire 25-acre land from property player IGB Corp Bhd for RM62.8 million.
Tiong said the 25-acre land acquisition would be settled via a combination of proceeds from its private placement last year which saw it raise RM20 million and bank borrowings.