Eupe profit drops on weaker project contributions in 4Q


PETALING JAYA: Lower contributions from completed projects and reduced construction-related income weighed on the latest quarterly performance of Eupe Corp Bhd, which reported a sharp year-on-year decline in both revenue and profit for its fourth quarter ended Feb 28, 2026 (4QFY26).

The group’s revenue fell 32.2% to RM67mil in 4QFY26 from RM98.7mil a year earlier, largely due to the absence of contributions from several projects that had already been completed.

These included Villa Natura Phases 1 and 2, The Somerset 2 and Bandar Seri Astana Jaya, all completed in FY25, as well as Cinta Sayang Resort Villa II and Helix2@PJ South, which were completed in the preceding quarter.

The decline was partially mitigated by stronger revenue from Est8@Seputeh, although this was insufficient to offset the overall drop.

In a filing with Bursa Malaysia, Eupe recorded lower construction revenue following reduced demand for building materials after the completion of major projects.

The weaker revenue translated into a pre-tax profit of RM8mil for the quarter, down 55.7% from RM18mil previously, while net profit in the latest quarter dropped to RM4.19mil from RM12.29mil a year earlier.

The decline was attributed to the absence of cost savings recognised from completed projects in the northern region in the corresponding quarter last year.

However, it noted that some cost efficiencies from infrastructure and development works at Villa Natura Phase 3, along with contributions from Est8, helped cushion the impact.

For the full financial year FY26, Eupe posted revenue of RM338mil and pre-tax profit of RM45.1mil, representing declines of 19.2% and 34.2% respectively compared to FY25.

The drop was primarily driven by lower contributions from its property development division, following the completion of several key projects in both the northern and central regions.

Profitability was also affected by a shift in project mix, with fewer high-margin developments recognised during the year.

In FY25, earnings were boosted by higher-margin projects such as Bandar Seri Astana Jaya and The Somerset 2, as well as a RM7.2mil fair value gain on investment properties, which was not repeated in FY26.

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