Ecobuilt Holdings Bhd (KL:ECOHLDS) has proposed to diversify its business into property development and the trading of building materials, as part of efforts to strengthen its earnings base. The group expects these new segments to contribute at least 25% of its net profit going forward.
UOB Kay Hian Securities has been appointed as the adviser for the proposed diversification exercise.
In a filing with Bursa Malaysia, Ecobuilt said it plans to set up new subsidiaries to undertake the respective businesses, subject to shareholders’ approval.
The group noted that the move will allow it to leverage its existing experience, industry knowledge and network within the construction sector, while providing greater flexibility to tap into opportunities across different stages of the construction and property value chain.
Ecobuilt added that the diversification is expected to complement its current construction activities and reduce reliance on a single business segment.
However, the company highlighted that both property development and construction-related activities are subject to various regulatory requirements imposed by authorities. Similarly, the building materials trading segment may face compliance obligations, including business registrations, import or distribution approvals, and product standards.
As at present, Ecobuilt has an outstanding unbilled order book of approximately RM196.8 million. This includes the Riveria Phase 2 project in Brickfields valued at RM165.07 million, and the Seiring – Block D project in Shah Alam worth RM31.73 million.
Financially, the group remains in a net debt position of RM2.03 million as at Nov 30, 2025, with total borrowings of RM3.37 million exceeding its cash and cash equivalents of RM1.35 million. The company has also been loss-making since the financial year 2022.
On the market front, Ecobuilt shares closed unchanged at 5.5 sen on Friday, giving the group a market capitalisation of RM23.1 million.
