Fiscal reforms boosting Encorp Bhd

Encorp Bhd has enjoyed a brisk turnaround in fortunes after the boardroom’s changes invoke fiscal reforms to how it conducts its businesses.

Its non – executive chairman Yusmadi Yusoff spoke about how reforms which was first unearth at Pakatan Harapan street rallies, is now fundamentally entrenched in the group.

“It represents our guide in corporate governance while having fiscal discipline to address what are the demands of the market. We roar about having reforms at PKR – led street rallies decades earlier. Now, we see its fruitarian,” he said in an interview.

Yusmadi is a former PKR parliamentarian and senator.

The reforms came in the form of greater transparency within all levels of the company, fiscal discipline and a focus on market driven incentives.

Sharing Encorp’s statement, Yusmadi disclosed that the company, a main market – listed property development and investment company, 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 group recorded a profit before tax of RM6.1 million, marking 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, the company cited.

Encorp, was founded in 2000, and its majority shareholder is the globe’s biggest plantation group- Felda, whose investment corporation, holds the biggest stake in the conglomerate.

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.

Sustained growth and financial resilience

Additionally, 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%.

Its group chief financial officer and officer -in – charge, Kamarul Azman Kamarozaman @ Amir said that its profitability reflects the strength of our strategic initiatives, disciplined cost management and operational efficiencies.

“This achievement would not have been possible without the steadfast support and guidance of our Board of Directors, whose leadership has been instrumental in steering the Group towards a stronger financial position,” he said.

The management is actively exploring several promising opportunities in the pipeline.

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.

The Group is currently involved in three core activities – property development, investment and construction.