Ecohlds latest QR Summary

Summary of EcoBuilt Holdings Berhad's Financial Performance

💰 Revenue and Profitability:
- For the quarter ended 31 May 2024, EcoBuilt Holdings Berhad reported revenue of RM 32.31 million, a slight decrease from RM 33.68 million in the same period last year.
- The company achieved a gross profit of RM 4.11 million, a significant improvement from a gross loss of RM 14.59 million in the same quarter the previous year.
- Profit before taxation for the quarter was RM 1.64 million, a notable turnaround from a loss before taxation of RM 26.74 million in the corresponding quarter last year.

**Year-to-Date Performance:**
- For the cumulative period ended 31 May 2024, revenue was RM 127.07 million, down from RM 164.06 million in the same period last year.
- The company posted a gross profit of RM 2.61 million, compared to a gross loss of RM 12.53 million in the previous year-to-date period.
- Loss before taxation for the year-to-date was RM 4.49 million, an improvement from a loss of RM 34.06 million in the prior year.

🔧 Operational and Financial Highlights:
- Improved profitability was driven by the progress in significant projects like Riveria City and Damai Suria, and a gain on the disposal of an office unit.
- The company reported no significant seasonal or cyclical factors affecting its operations during the period.

**Taxation and Comprehensive Income:**
- The effective tax rate is lower than the statutory tax rate due to the loss position of some companies within the group.
- The company reported a total comprehensive income of RM 2.51 million for the quarter, compared to a total comprehensive loss of RM 23.91 million in the same quarter last year.

📊 Conclusion on Investment Viability

**Positive Indicators:**
- The substantial reduction in losses and improvement in profitability indicate a positive turnaround in the company's financial performance.
- The company's ability to generate gross profits and achieve profitability before taxation in the recent quarter is a strong positive indicator.
- Significant projects contributing to revenue and gains from asset disposals show effective management of assets and operations.

**Potential Concerns:**
- Despite improvements, the company still reported a loss before taxation on a year-to-date basis.
- The decline in year-to-date revenue compared to the previous year suggests challenges in maintaining or growing sales.

⚠️ Overall Investment Outlook:
Based on the recent financial performance and the improvement in key metrics, EcoBuilt Holdings Berhad shows potential for recovery and growth. The company's efforts to turn around its financials are evident, and if sustained, could present a viable investment opportunity. However, potential investors should remain cautious and consider the ongoing challenges reflected in the year-to-date performance and the broader economic conditions impacting the construction sector.

Given these factors, it may be a worthwhile investment for those willing to take on moderate risk, with a close watch on the company's upcoming performance and project execution.