EcoWorld Malaysia first half net profit up 35% to RM71.5m

EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said:

KUALA LUMPUR: EcoWorld Malaysia Bhd's net profit rose by 35% to RM71.49mil in the first half ended April 30, 2019 compared with RM52.89mil a year ago, boosted by higher revenues from its projects.

The company announced on Thursday the stronger earnings were due to the strong growth in revenues achieved by Eco Grandeur, Eco Ardence, Eco Horizon and Bukit Bintang City Centre (BBCC) which increased the group’s share of results from its Malaysian joint ventures from RM7.27mil in the previous year to RM37.63mil in the current year. 

Its revenue was RM1.034bil compared with RM1.068bil a year ago.

For the second quarter, its net profit was RM41.17mil compared with RM43.13mil a year ago. Its revenue was RM543.18mil compared with RM549.71mil. Earnings per share were 1.40 sen compared with 1.46 sen.

“EcoWorld Malaysia also saw a strong rebound in sales following the official launch of the National Home Ownership Campaign (NHOC) on 1 March 2019. 

“Total sales achieved in the first seven months of FY2019 has reached RM1.026bil, a substantial improvement of close to RM800mil over three months, aided by the group’s attractive Help2Own and Stay2Own solutions under its own HOPE Campaign,” it said. 

EcoWorld said based on the current sales momentum and numerous initiatives, it is confident of a better 2H FY2019. 

It said this positive outlook was underpinned by its effective stake in the future revenue of properties sold by its subsidiaries and joint-ventures amounting to RM6.09bil as at May 31, 2019 and supported by EcoWorld International’s bright prospects going forward. 

EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said: “We are delighted to note that sales activities have picked up in a sustained manner since March 1, 2019. 

“Thanks to the NHOC, it is truly a buyer’s market today. However, despite the extremely competitive landscape, interest in all our developments remain strong.” 

Chang also noted that whilst the sectoral outlook in Malaysia continues to be challenging, there are green shoots emerging as a good number of saleable unsold units would have been cleared from the system as a result of the NHOC. 

This will enable the market to recalibrate to its natural level going forward, supported by the country’s relatively young demographic and continuing new household formation.