KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) said today profit after tax climbed 10.5% to RM33.5mil for the first quarter ended Jan 31, boosted by a higher share of profits by the group's joint-ventures.
It has also announced the redesignation of non-executive chairman Tan Sri Liew Kee Sin to executive chairman to lead the group.
“We recorded RM305mil in sales in 1Q 2020 which is an improvement over the RM230mil sales achieved in the first 4 months of FY2019," president and CEO Datuk Chang Khim Wah said in a statement today.
The first quarter is usually a seasonally slow period for the company due to the Christmas holidays and Chinese New Year holidays.
Sales momentum picked up after the holidays, Chang said, with encouraging build-up of confirmed bookings at various projects right until early March.
Chang noted however that conversion of the Group’s strong bookings pipeline will be delayed due to the implementation of the tough but very necessary Movement Control Order (MCO).
“The business continuity measures we have put in place will help ensure that once the MCO is lifted, we can hit the ground running with the signing of sales and purchase agreements for bookings received," Chang said.
EcoWorld Malaysia has an interim full year sales target of RM2bil.
"We are fortunate in that our future revenue position remains high at RM4.69bil as at Jan 31, 2020 which will help sustain our cashflow and earnings pipeline during this period," Chang said.
"The sales target will be revisited as soon as the Covid-19 outbreak is contained and business activities normalise. This is with a view towards increasing the target to ensure that the Group’s future revenue position going forward remains consistently strong,” said Chang.
Meanwhile, EcoWorld Malaysia has announced that Tan Sri Liew Kee Sin, presently its non-executive chairman has been redesignated as the group’s executive chairman to lead the group to overcome the present market challenges and take advantage of opportunities that will undoubtedly present themselves in every crisis.
EcoWorld Malaysia is also proposing to buyback its shares in view of the "extreme dislocation" between the company’s current share price which closed at 34.5 sen on March 25 against its book value of RM1.55 per share as at Jan 31.
On a related development, Eco World International Bhd said it made a net profit of RM5.19mil in the quarter ended Jan 31.
“Our sales for 1Q 2020 amounted to RM314mil which is a marked improvement from the RM120mil recorded in the same period of FY2019," president and CEO Datuk Teow Leong Seng said.
This is largely due to the recovery in demand for higher-end products in London with EcoWorld-Ballymore, its joint-venture that focuses on the upper mainstream and lower prime segment of the London market, contributing RM246mil worth of sales.
As at Jan 31, EcoWorld International has delivered more than 1,200 private units.
Teow said the number of deliveries is expected to increase further in the remaining quarters of FY2020.
This will be driven mainly by completion of Wardian in London as well as West Village and Yarra One in Australia.
"These completions will enable a substantial portion of our RM4.75bil effective future revenue to be translated into revenue and share of profit in joint-ventures in the current financial year,” he said.
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