Financials

Condensed Consolidated Statement Of Comprehensive Income
For The Financial Period Ended 30 September 2024

Condensed Consolidated Statement Of Financial Position
As At 30 September 2024

Financial Review

Financial review for current quarter and financial year to date

Current quarter ("1Q 2025") against preceding year corresponding quarter ("1Q 2024")

For the 1Q 2025, the Group reported a revenue of RM270.439 million and loss before tax of RM16.432 million as compared to the revenue of RM271.898 million and profit before tax of RM23.008 million reported in the 1Q 2024.

The performance of the respective operating business segments for the 1Q 2025 under review as compared to the 1Q 2024 is analysed as follow:

Construction operations

The construction segment reported a lower revenue of RM70.071 million for the 1Q 2025 as compared to RM165.259 million in 1Q 2024. The decrease in revenue compared to the corresponding quarter of the previous year was primarily due to the completion of the Setiawangsa-Pantai Expressway ("SPE") project in the financial year ended 30 June 2024. Therefore, the current year quarter revenue are mainly from our ongoing Rapid Transit System Link ("RTS Link") project which is progressing well and remains on schedule.

This improvement is primarily attributed to the two separate Sale and Purchase Agreements ("SPA") dated 22 February 2024 entered into by a subsidiary of the Company, namely Ekovest Properties Sdn Bhd ("EPSB") with Airman Sdn Bhd ("Airman) for the disposal of thirteen (13) parcels of land, as well as the second SPAs dated 29 July 2024 entered into by EPSB and Airman for the disposal of three (3) parcels of land. These SPAs have become unconditional, with a total revenue of RM75.181 million recognised during the quarter.

Property development

The property development segment reported a higher revenue of RM88.685 million for the current quarter as compared to RM5.889 million in the preceding year corresponding quarter. Similarly, the segment's result has increase from a profit of RM0.482 million in 1Q 2024 to a profit of RM21.010 million in 1Q 2025.

Toll operations

The toll operations segment registered a higher revenue of RM73.619 million in 1Q 2025 as compared to RM56.490 million in 1Q 2024, indicating an increase of approximately 30.32% in revenue. The higher revenue in this current reporting quarter was due to the increase in toll collections following the opening of the new SPE Highway on 3 November 2023, which was not operational in the corresponding quarter of the previous year. As a result, this segment reported a higher profit of RM62.842 million in 1Q 2025 as against RM46.069 million in 1Q 2024.

Plantation

For the current quarter 1Q 2025, the plantation segment registered a lower revenue of RM25.683 million and a segment result of a profit of RM7.382 million as compared with revenue of RM31.739 million and segment result of a profit of RM6.443 million in the preceding year corresponding quarter. The decrease in revenue was mainly attributed to the lower sales contribution for the offtake of downstream durian products and comparatively weaker margin for the durian related businesses due to softer offtake rate by offshore customers. However this is mitigated by a higher sales from the oil palm plantation and the improved average selling price of FFB as compared to 1Q 2024.

Food and Beverages

The F&B division has registered a lower revenue of RM0.544 million for 1Q 2025 as against the preceding year corresponding quarter of RM2.644 million. The decline in revenue was mainly due to the scaling down of the F&B segment, where most of the outlets being gradually closed down. The reduction in operating costs has mitigated the losses, bringing down from RM1.354 million in Q1 2024 to RM0.339 million in Q1 2025.

Property Investment and others

The property investment segment's revenue for the current quarter in comparison to the corresponding quarter of the preceding year has improved from RM9.877 million in 1Q 2024 to RM11.837 million in 1Q 2025. Correspondingly, the segment's result has increase from a profit of RM1.597 million in 1Q 2024 to a profit of RM3.449 million in 1Q 2025. The increase is primarily attributed to the higher occupancy rate of the hotel. The hotel operations has been showing a consistent growth and improvement since its opening in March 2023.

Prospects

The Board remains optimistic about the future development of each of the Group's business segments and is confident that each segment will contribute positively to the Group's performance in the coming financial year ending 30 June 2025.

The Group had also experienced steady increase in toll revenue for Duke Phase-1 and Phase-2 upon the upliftment of the MCO since October 2021, and with the full opening of the SPE on 3 November 2023. This will further improve the toll collection revenue under this operating segment, notwithstanding that financing costs for SPE will no longer be capitalised in the financial statements.

The Board will continue to explore the right opportunities which will contribute to both the property development and construction segment simultaneously. The Group has finalised the financial requirement and the authorities’ submission, and plans to launch the upcoming new property development, EkoTitiwangsa in this FYE 2025. As for the construction segment, the Board expects that the on-going rationalisation of the construction scope under the RTS Link project as well as construction of EkoTitiwangsa to contribute positively to the Group’s future construction revenue and earnings. In addition, the Group is continuously working closely with the Government on various infrastructure projects.

Our subsidiary, PLS Plantations Berhad ("PLS") transformation journey from the cyclical oil palm plantation to a more diversified range of upstream and downstream activities will require a longer gestation period. In particular, the gestation period for the durian trees is about 4 to 5 years and thus, the bulk of our durian revenues are now mainly from trading activities. In the near term, PLS will continue its current rehabilitation and sanitation works with emphasis on recommended plantation practices to improve the production yield of its oil palm estates, matured durian plantation and contract farm. In addition, PLS will continue to work closely with its current and prospective business associates to improve the retail offtake rate and margin of downstream durian products by offshore wholesalers and end consumers. Concurrently, upstream investment in durian plantation will continue to be a mainstay of PLS to complement its existing downstream business while waiting for PLS’s durian farm to be matured and fruitful in 3 to 4 years.

This is in line with the long-term group strategy to expand and diversified into other businesses to reduce dependency and reliance on our existing businesses in construction and property development.