KUALA LUMPUR: ECOFIRST Consolidated Bhd expects revenue to at least triple in its financial year ending May 31 2016, underpinned by promising prospects from retail assets and property development.
Group chief executive officer Datuk Tiong Kwing Hee said the company was banking on its current project in Ipoh and retail assets to bolster its performance for the current financial year.
In the last financial year, it recorded a RM81.2 million revenue against RM24.4 million the year before.
Ecofirst’s two malls — 1Segamat in Johor and South City Plaza in Seri Kembangan, Selangor — generated a turnover of RM19.5 million last year.
“I believe the two malls will continue to give us good rental income and operating cash flow,” Tiong told Business Times.
1Segamat mall has continued to thrive with 100 per cent occupancy rate, while South City Plaza is expected to provide an annual rental income of more than RM14 million.
“Rental for the South City Plaza has improved and there is great potential for further increase.”
The company’s latest property development, known as Upper East@Tiger Lane in Jalan Kelab Golf, Ipoh, has received an encouraging take-up rate of 80 per cent.
With a gross development value of RM300 million, it consists of 529 units of high-end condominiums spread over five 12-storey blocks.
Tiong said construction had commenced and was expected to be completed by the end of next year.
He said Ecofirst was also open to new businesses that would generate a steady income.
The company operates four divisions — construction, property investment, agro-biotechnology and mineral resources.