Current quarter ("3Q 2021") against preceding year corresponding quarter ("3Q 2020")
For the 3Q 2021, the Group registered a revenue of RM304.511 million and profit before tax of RM13.224 million as compared to revenue of RM344.875 million and profit before tax of RM20.251 million reported in the 3Q 2020.
The performance of the respective operating business segments for the 3Q 2021 under review as compared to the 3Q 2020 is analysed as follow:
The construction sector reported a lower revenue of RM251.170 million for the 3Q 2021 as compared to RM288.438 in 3Q 2020. The decrease in revenue in the 3Q 2021 was mainly due to lower construction contribution from the River of Life beautification packages which are at the tail end of the contract. The Duke Phase 3 project have since adjusted to the current norm while complying to the new SOPs procedures at the construction sites. Despite the lower revenue in the 3Q 2021, the gross profit has increased as compared to 3Q 2020 as the composition of the contracts has different profit margin.
The property development segment reported a slightly higher revenue of RM5.406 million as compared to a revenue of RM5.334 million in the preceding year corresponding quarter. The segment has improved on the back of more positive outlook of the economy which has led to more sales revenue from the 3 blocks of service apartments at EkoCheras. As a result of the increased revenue, the property segment reported a higher gross profit of RM1.434 million in 3Q 2021 as against RM1.182 million in 3Q 2020.
The toll operations sector registered a lower revenue of RM30.680 million in 3Q 2021 as compared to RM39.910 million in 3Q 2020. There is a decrease of approximately 23.13% in the toll revenue due to the implementation of the MCO 2.0 from 13 January 2021 to 4 March 2021 which has impacted the traffic volume for this current quarter. As a result of the decreased revenue, the sector reported a lower gross profit of RM24.173 million in 3Q 2021 as against RM29.740 million in 3Q 2020.
With the completion of the acquisition of PLS on 30 October 2020, making it a subsidiary of the Group, the Group has a new plantation segment which reported a revenue of RM8.415 million and a gross profit of RM1.574 million. The revenue were mainly contributed from its oil palm plantation and durian plantation, contract farming and manufacturing and trading divisions.
Investment holding and others
The revenue for the current quarter decreased from RM11.193 million in 3Q 2020 to RM8.840 million in 3Q 2021 mainly due to the decrease in both the revenue for EkoCheras Shopping Mall and the food and beverage activities.
Rental rebates were given consequence on the various MCO implemented for the tenants of EkoCheras Mall. The food and beverage activities was also badly affected during this MCO period. For the 3Q 2021, this segment reported a gross loss of RM0.174 milion as compared to a gross profit of RM0.914 million in 3Q 2020.
Current year to date ("YTD 2021") against preceding year corresponding period ("YTD 2020")
For the YTD 2021, the Group registered a revenue of RM977.227 million and profit before tax of RM37.206 million as compared to the revenue of RM1,075.983 million and profit before tax of RM135.881 million reported in YTD 2020. The substantial decrease in profit before tax for the current period is mainly due to the recognition of an income from the facilitation fund for the infrastructures at Jalan Cheras during the preceding year corresponding period.
As part of our strategy to transform Ekovest into a larger listed conglomerate with a portfolio of diversified businesses, our presence in PLS following the completion of the unconditional mandatory general offer to acquire all the remaining PLS shares and warrants not held by Ekovest on 11 December 2020 has enabled us to venture into the management and operation of oil palm and forest plantations as well as in durian plantation, production, distribution and related businesses. This is in line with the long-term strategy of expanding and diversifying into other businesses to reduce dependency and reliance on our existing businesses in construction, property development and toll operations.
The Board remained optimistic in delivering positive financial results and expects the new plantations segment, ongoing construction of SPE, the toll revenue and the sales of completed properties to contribute positively to the Group’s revenue and earnings for the current financial year.
The Company is continuously working closely with Government on various infrastructure projects which has been proposed to the Government. The Board is hopeful that the Company is able to secure some of these projects and the Board will continue to review the financial impact and monitor any opportunity to launch new Property Development project for the Group.