KUALA LUMPUR: ECO WORLD Development Bhd’s net profit was up 10.5% to RM33.51mil in the first quarter ended Jan 31,2020 from RM30.31mil a year ago, driven by higher share contributed by the group’s Malaysian joint ventures.
The property developer has also announced the redesignation of non-executive chairman Tan Sri Liew Kee Sin to executive chairman to lead the group to overcome the present market challenges and take advantage of opportunities that may arise.
The group said its share of the results of its Malaysian joint ventures rose by 26.2% in the first quarter compared to the corresponding period last year.
“This was contributed by projects namely Eco Grandeur, Eco Business Park V, Eco Horizon, Eco Ardence and Bukit Bintang City Centre, ” it said in a filing with Bursa Malaysia.
Meanwhile, Eco World Development’s revenue was up 9.5% to RM537.94mil in the quarter from RM491.23mil a year ago, mainly driven by its Malaysian joint-ventures sales.
President and chief executive officer Datuk Chang Khim Wah said the sales recorded in the first quarter was RM305mil compared to RM230mil a year ago.
“This is a commendable result, given that the first quarter is usually a seasonally slow quarter due to the year-end Christmas holidays and Chinese New Year which was celebrated in January this year, ” he said.
Chang also noted that the conversion of the group’s strong booking pipeline would be delayed due to the implementation of the movement control order (MCO) by the government.
EcoWorld has activated its business continuity plan to allow employees to work from home and follow up with customers, end-financiers and solicitors during the restricted movement period.
Meanwhile, Chang said preparations are being made to roll out EcoWorld’s new brand of homes priced from RM300,000 to RM450,000 to specifically cater to the needs of the middle-income group.
In view of the Covid-19 pandemic, the group has set a sales target of RM2bil for financial year ending Oct 31,2020 (FY20).
“We are fortunate 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, ” he said.
Following the recent announcement by Bank Negara of a six-month moratorium on loan repayments, the group said the property sector – which relied on the health of the overall economy, continued access to funding for purchasers as well as stable employment prospects – would benefit from the grace period.
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