Financial review for current quarter and financial year to date
Current quarter (“1Q 2026”) against preceding year corresponding quarter (“1Q 2025”)
For the 1Q 2026, the Group reported a revenue of RM329.392 million and a profit before tax of RM93.966 million as compared to the revenue of RM270.439 million and a loss before tax of RM16.432 million reported in the 1Q 2025.
The performance of the respective operating business segments for the 1Q 2026 under review as compared to the 1Q 2025 is analysed as follow:
Construction operations
For the first quarter ended 30 September 2025, the construction segment recorded revenue of RM58.054 million, compared to RM70.071 million in the corresponding period of the previous year. The decline in revenue for 1Q 2026 relative to 1Q 2025 was mainly attributable to the higher certified construction work for the RTS project in the prior period. In line with the lower revenue, segment profit also decreased, falling from RM26.334 million in 1Q 2025 to RM8.076 million in 1Q 2026.
Property development
The property development segment recorded lower revenue of RM7.053 million for the current quarter, compared to RM88.685 million in the corresponding quarter of the previous year. The decline was mainly attributable to the recognition, in the previous year, of two separate Sale and Purchase Agreements entered into by Ekovest Properties Sdn Bhd, a subsidiary of the Company, with Airman Sdn Bhd for the disposal of sixteen (16) parcels of land, which resulted in comparatively higher revenue in that period.
Correspondingly, the segment result declined from a profit of RM21.010 million in 1Q 2025 to a loss of RM0.184 million in 1Q 2026. The minimal loss incurred in the current quarter was due to additional costs undertaken to improve future property sales.
Toll operations
The toll operations segment recorded a higher revenue of RM222.165 million in the first quarter ended 30 September 2025, representing an increase of approximately 301.78% compared to RM73.619 million in the corresponding quarter of the previous year. The significant growth was mainly attributable to the recognition of toll compensation amounting to RM140.953 million in relation to the toll rate freeze for calendar year 2024 that have been verified by the Government in September 2025.
As a result, the segment reported a significantly higher segment profit of RM206.027 million in 1Q 2026 as compared to RM62.842 million in 1Q 2025.
Plantation
In 1Q 2026, the plantation segment reported a higher revenue of RM29.672 million and a segment profit of RM11.283 million, as compared to revenue of RM25.683 million and segment profit of RM7.382 million in the corresponding quarter of the previous year. The improvement in revenue and profit was mainly attributable to the increase in average Fresh Fruit Brunches (FFB) sales volume of the oil palm plantation and higher crude palm oil (CPO) prices during the quarter compared to the same period last year.
Property Investment and others
The property investment segment, comprising the EkoCheras Mall and INNSiDE by Meliá Hotel, continued to demonstrate stable performance during the current quarter. The segment recorded a revenue of RM12.448 million for the current quarter, which was broadly consistent with RM12.381 million revenue recorded in 1Q 2025. Segment profit, however, declined from RM3.110 million to RM1.947 million, primarily due to some final non-recurring exit costs incurred in association with the closure of the Group’s F&B operations.
The Board remains optimistic about the future growth prospects of the Group’s business segments and is confident that each segment will continue to contribute positively to the Group’s performance for the current financial year ending 30 June 2026.
SPE was fully opened to the public on 3 November 2023, following a three-year delay from its original schedule due to government-directed alignment changes and pandemic-related restrictions. Notwithstanding the delay, SPE is expected to benefit from traffic inflows from the Group’s established DUKE 1 and DUKE 2 highways, as well as from its strategic integration with the surrounding highway network. The strong connectivity among these corridors is anticipated to channel additional vehicles from DUKE 1 and DUKE 2 into SPE, thereby enhancing overall traffic volumes across the network.
In addition, the Group is pursuing compensation from the Government to address losses and increased expenses incurred as a result of delays not attributable to the Group. The Board remains confident that the combined SPE–DUKE network will serve as a key long-term growth driver for the Group.
As SPE traffic continues to build and reach maturity, the tolling division’s financial performance will strengthen, enabling the Group to absorb finance costs more comfortably. The Board remains optimistic that SPE will become a significant long-term contributor to the Group’s earnings. The gradual ramp-up of SPE, supported by the maturing traffic volume, is expected to progressively mitigate the impact of the higher financing cost.
In the property development and construction segments, the Group will continue to actively pursue new opportunities aligned with its strategic objectives. Our new EkoTitiwangsa development will serve as a key driver of growth in the property segment.
On the construction front, the rationalisation of scope under the Rapid Transit System Link (“RTS Link”) project is expected to contribute positively to revenue and earnings. The Group’s construction pipeline was further strengthened following the Government’s approval on 5 May 2025 for the proposed privatisation of Phase 1 – The Laluan Istana – Kiara Expressway (LIKE) and Phase 2 – Kampung Baru Link Expressway (KBL).
Upon finalisation of the concession agreement and achieving financial close for Phase 1 – Project LIKE, the Group will promptly mobilise its resources to commence construction, reinforcing its position in the infrastructure development sector. The Group is also working concurrently with relevant government agencies to obtain necessaries approval for the potential Phase 2 – Project KBL with the objective of commencing construction work thereafter.
Separately, the Group’s subsidiary, PLS Plantations Berhad (“PLS”), is integrating its traditional cyclical oil palm business with cash crops, alongside upstream and downstream activities. The transformation also includes the durian segment, which despite its longer gestation period offers strong long-term potential. Currently, durian revenue is mainly derived from trading, while the Group continues to invest in developing its own plantations.
Upstream durian investments will remain a key focus, supporting future growth of downstream operations as the plantations mature. This transformation is aligned with the Group’s long-term strategy to diversify its revenue base and reduce reliance on the construction and property development segments, thereby promoting more sustainable and resilient growth.