“EcoFirst Consolidated Bhd’s Q4 profit drops 66.5% to RM13.95 million despite 88% revenue growth, as higher costs and lower fair value gains weigh in. Company warns of SST impact on future developments.”
Kuala Lumpur, 31th July 2025, 12.45pm – EcoFirst Consolidated Bhd reported a sharp 66.5% decline in net profit for the fourth quarter ended May 31, 2025 (4QFY2025), despite a strong surge in revenue driven by its flagship KL48 development.
The group posted a net profit of RM13.95 million for the quarter, down from RM41.70 million in the same period last year. The decline was mainly attributed to lower fair value gains on investment properties and higher operating costs.
In contrast, quarterly revenue jumped 88.3% to RM159.58 million from RM84.76 million a year ago, supported by accelerated construction progress at the KL48 property project.
No dividend was declared for the quarter.
Full-Year Results
For the full financial year (FY2025), EcoFirst saw its net profit rise by 91.8% year-on-year to RM24.60 million, compared to RM12.83 million in FY2024. Annual revenue more than doubled to RM454.10 million from RM162.68 million.
Cautious Outlook Amid SST Expansion
Looking ahead, EcoFirst raised concerns about the expanded 6% Sales and Services Tax (SST) on construction materials and services, which came into effect in 2024. The group warned that the SST increase could:
- Raise overall development costs
- Reduce profit margins
- Increase home prices
- Potentially slow down market demand
EcoFirst said the board is actively exploring ways to mitigate these challenges, including reviewing pricing strategies and development timelines.
“The board of directors is seeking ways to make adjustments to the existing plans in order to avoid price hikes and to address the exact impact,” it said in a bourse filing.
EcoFirst shares closed unchanged at 40 sen on Wednesday, with a market capitalisation of RM483.17 million.
