KUALA LUMPUR: Eco World Development Group Bhd’s (EcoWorld Malaysia) net profit jumped 71% to RM62.4mil in the first quarter ended Jan 31,2021, from RM36.50mil a year ago bolstered by a 60% increase in the group’s share of results from joint ventures, in line with the substantially higher profits recorded by EcoWorld International.
The property developer said cost-saving measures implemented last year led to a decline in administrative expenses by 15.7% compared to a year ago, which contributed to the jump in net profit for the quarter.
As at Feb 28, the group’s future revenue position remains high at RM3.59bil, providing clear earnings visibility, moving forward.
Moreover, EcoWorld Malaysia doubled its sales in the first quarter amounting to RM706mil from RM305mil posted a year ago.
“As at Feb 28, total year-to-date sales amounted to RM911mil, giving the group a good head start to financial year ending Oct 31,2021 (FY21), ” it said in a statement.
EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah said the group is grateful to its customers for the strong sales of RM911mil, as the group managed to sustain the sales momentum since the second half of last year.
“Total sales achieved by EcoWorld Malaysia over the last 10 months is RM2.88bil, which is close to the highest we have ever achieved in a similar period, even in the pre-Covid era, ” he added.
On a positive note, Chang said the strong start to FY21 was driven by the group’s ongoing promotional campaigns and effectiveness of its digitalisation initiatives that improved lead generation and allowed faster sales conversion cycles.
He added that the strategic expansion of the group’s product range, which includes the new duduk series, have been well-received by homeowners, particularly the Gen-Y and Gen-Z segments of the market.
“There is good take-up to the group’s Eco Business Park project with RM107mil in sales achieved as at Feb 28,2021, close to 50% of the RM220mil achieved in the full 12 months of FY20.
“Our strategic shift to focus on meeting the housing needs of a new generation of homeowners, with products specifically designed to suit their budget, combined with living environments and amenities carefully curated to meet their lifestyle needs and aspirations, has made a real difference, ” he noted.
Meanwhile, Eco World International Bhd posted a net profit of RM56.6mil for the first quarter, which is substantially higher than the RM6mil recorded a year ago.
“Gross profit for the first quarter was RM69.64mil, mainly due to the commencement of revenue and profit recognition of the group’s Yarra One project in Melbourne, following the progressive handover of units sold to customers.
“EcoWorld International’s share of results in joint ventures in the first quarter was also higher as a higher number of units sold to customers were handed over by its projects in the United Kingdom in the current quarter, ” it added.
The group posted sales of RM312mil in the quarter, which is in excess of RM100mil per month.
“As at Feb 28,2021, EcoWorld International has achieved RM408mil sales and its future revenue position remains healthy at RM2.2bil, ” the group noted.
As such, EcoWorld International declared a maiden interim dividend of 1 sen per share for the first quarter.
Moving forward, EcoWorld Malaysia chairman Tan Sri Liew Kee Sin (pic below) said both EcoWorld Malaysia and EcoWorld International are on track to achieve the combined RM5bil sales target set for FY21.
“EcoWorld International’s focus will be on rewarding its shareholders with dividend payments now that a substantial portion of its early projects have been completed.
“Similarly, EcoWorld Malaysia’s strong sales performance and improving balance sheet should enable it to improve on its dividend payment capabilities in FY21 as compared to FY20, ” he added.
Despite the challenges caused by the Covid-19 pandemic, Liew said both companies have reinvented themselves and continue to seize fresh opportunities in the new normal.
“Their solid performance in this most challenging time bodes well for our future once economic activities pick up and market confidence returns, ” he added.