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ENCORP Bhd reported a strong turnaround for the financial year ended December 31, 2024, posting a net profit of RM3.4 million compared to a net loss of RM8.5 million in the previous year.
For the full year performance, the main market - listed property development and investment company, recorded a profit before tax of RM6.1
million.
Its non - executive chairman Yusmadi Yusoff said this marks a strong recovery from a loss of RM1.1 million in the corresponding period in 2023.
“This represents Encorp's first return to profitability since 2016,” he said.
Encorp, was founded in 2000, and its majority shareholder is Felda.
Its turnaround was mainly driven by a reversal of RM6.6 million in cost of sales provisions from prior years, accounting gains of RM2.1 million from fair value adjustments on investment properties and the reversal of inventory write-offs totalling RM1.8 million, all contributing positively to the bottom - line.
Additionally, Yusmaidi said improved efficiencies from close monitoring, effective cost control measures and the successful execution of restructuring and rationalisation initiatives further strengthened the group’s performance.
The Group saw an improvement in sales performance, supported by stable revenue
streams from its concession, rental income, construction and facilities management
divisions.
“With operations backed by a solid net asset per share of RM1.06, Encorp remains well-positioned to sustain growth and strengthen its financial resilience.
“Property development remain the largest revenue contributor at 51%, followed by concession income at 39.8%,” ge added.
Its group chief financial officer Kamarul Azman Kamarozaman @ Amir said a key priority for its property division this year is the development of Balau Residences in Kuantan, Pahang and Lamanda Chuping Phase 2 in Perlis.
Encorp is currently finalising project details and looks forward to unveiling more soon, he said.
The Group is currently involved in three core activities – property development, investment and construction. - March 1, 2025.
