Ekovest continues to bleed in 4Q, but narrower on lower taxation

• The net loss marks the group’s seventh consecutive quarter in the red. It has operations in construction, property development, toll operations, plantation and property investment. Interest expenses continued to drag the group into the red. Though, net loss was narrower, despite lower revenue, thanks to lower taxation.

KUALA LUMPUR (Aug 29): Diversified group Ekovest Bhd (KL:EKOVEST) extended its quarterly streak in the red, but with a narrower net loss in the fourth quarter, helped by lower taxation.

Net loss for the three months ended June 30, 2025 (4QFY2025) shrunk to RM60.5 million from RM64.87 million in 4QFY2024, according to the group’s bourse filing on Friday. Revenue dropped 25.8% to RM201.55 million from RM271.59 million.

The net loss marks the group’s seventh consecutive quarter in the red. It has operations in construction, property development, toll operations, plantation and property investment.

Interest expenses continued to drag the group into the red. Though, net loss was narrower, despite lower revenue, thanks to lower taxation.

Tax expenses stood at RM233,000 in 4QFY2025 compared with RM12.53 million in 4QFY2024, while it booked deferred tax income of RM1.48 million versus deferred tax expense of RM6.18 million.

For the financial year ended June 30, 2025 (FY2025), Ekovest’s net loss was wider at RM139.26 million versus RM122.96 million in FY2024, as revenue dropped 13.4% to RM992.97 million from RM1.15 billion.

Looking ahead, Ekovest noted financing costs related to the Setiawangsa–Pantai Expressway can no longer be capitalised—which may lead to higher finance expenses in the future.

However, the group expects improved toll collection from increasing traffic volumes at the highway to be able to cover the increase in finance expenses.

On the construction segment front, the group said ongoing rationalisation of scope under the Rapid Transit System 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 May 5, 2025, for the proposed privatisation of Phase 1—The Laluan Istana–Kiara Expressway (LIKE) and Phase 2–Kampung Baru Link Expressway (KBL),” it added.

Shares in Ekovest ended unchanged at 37.5 sen, valuing the group at RM1.13 billion.

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