Eco World Q1 earnings at RM20.6m, YTD sales RM607m

Eco World's Q1 pre-tax profit jumped to RM31.16mil from RM5.63mil.

KUALA LUMPUR: Eco World Development Group Bhd recorded earnings of RM20.67mil in the first quarter ended Jan 31, 2016 on the back of RM463.51m in revenue and is confident of achieving its RM4bil sales target in FY16 amid the soft property market.

The  property developer said on Thursday earnings were up 575% from RM3.06mil a year ago and revenue increased by 193.2% to RM463.51mil from RM158.03mil. 

Pre-tax profit jumped to RM31.16mil from RM5.63mil. Its earnings per share were 0.87 sen compared with 0.6 sen a year ago.

Ongoing projects which contributed to the revenue and gross profit achieved include Eco Majestic and Eco Sky in the Klang Valley, Eco Botanic, Eco Spring, Eco Summer and Eco Business Park 1, Eco Tropics and Eco Business Park III in Iskandar Malaysia and Eco Terraces on Penang island,” it said.

Eco World said the group's current quarter revenue was RM218.4mil lower than the quarter ended Oct 31,  2015. 

“This is consistent with the slower progress of works typically experienced during the year-end festive season and in the lead-up to the Chinese New Year,” it explained.

“As at Feb 29, 2016, year-to-date group sales amounted to RM607.8mil which is broadly in line with the sales achieved in the first four months of FY2015 amounting to RM621.1mil. 

“A total of RM344.6mil came from projects in the Klang Valley, RM233.1mil came from projects in Iskandar Malaysia and the remaining RM30.1mil was contributed by projects in Penang,” it said.
 
On the outlook, Eco World president and CEO Datuk Chang Kim Wah said in FY2016, the group’s sales will be underpinned by the launch of new phases and introduction of new products within its on-going projects.