Eco World Devt targets RM7b sales

KUALA LUMPUR: Eco World Development Group Bhd posted earnings of RM7.18mil in the 13 months ended Oct 31, 2014 as the company remained upbeat about its prospects with four new projects.

Announcing its results on Wednesday, the property development company targets to achieve RM7bil sales over FY2015 & FY2016 with the current and new projects.

“For the upcoming financial year, the Group intends to launch four new projects – these are Eco Sanctuary in Shah Alam, Eco Terraces in Penang, Eco Tropics and Eco Business Park III in Iskandar Malaysia. Along with its existing projects in the Klang Valley and Iskandar Malaysia, the group targets to achieve RM7bil sales over FY2015 & FY2016,” it said.

Elaborating on its financial performance, it said the earnings were on the back of RM148.39mil in revenue were due to the Kota Masai project in Iskandar Malaysia and Saujana Glenmarie.

In the one month ended Oct 31, 2014 Eco World recorded earnings of RM1.37mil and pre-tax profit of RM2.82mil while revenue was RM36.03mil. 

“The revenue and profit before tax for the current month is mainly attributable to the sales of completed units in Saujana Glenmarie.

The company said it was upbeat about its prospects as the group’s proposed Eco Sanctuary land acquisition had been rendered unconditional. This would set the stage for the launch of the Eco Sanctuary project in FY2015.

After completing the proposed corporate exercise, the group would be able to scale up its business operations in a significant manner by having an immediate presence in all the three key development regions of Iskandar Malaysia, the Klang Valley and Penang.

“The size of the group’s land bank will increase by 3,106 acres which will generate additional GDV of approximately RM30bil,” it said. 

Eco World said together with the proposed Eco Sanctuary land acquisition and proposed
Semenyih land acquisition would increase the group’s total landbank to 4,925.7 acres with a total combined GDV of RM47bil.

It also said five of its launched projects had, up until Oct 31, 2014, achieved sales totaling RM3.02bil, the benefits of which will flow to the group upon the completion of the
proposed corporate exercise.