KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) said sales more than doubled in the second quarter ended Apr 30 due to strong take-ups on newly launched property projects.
Total seven-month sales has reached RM2.53bil, the company said, surpassing the RM2.3bil sales achieved in FY2020.
EcoWorld Malaysia is targeting sales of RM2.875bil in FY2021.
“The continued strong sales momentum we have been experiencing since the middle of last year is very heartening indeed," its president and CEO Datuk Chang Kim Wah said in a statement today. "We are particularly encouraged by the fact that recovery has been broad-based with our projects in every single region performing well,” he added.
The strong sales boosted its profit after tax to RM42.32mil compared with RM15.5mil achieved a year ago.
EcoWorld Malaysia has declared an interim dividend of 2 sen per share in 2Q 2021.
Future revenue from Malaysian projects alone increased substantially from RM2.99bil as at Feb 28 to RM3.77bil as at May 31.
Including EcoWorld Malaysia’s share of future revenue from EcoWorld International, total future revenue from projects undertaken in Malaysia and overseas stands at RM4.21bil as at May 31.
"We are very grateful that we have managed to secure 88% of our sales target within the first 7 months of the financial year," Chang said.
“Accordingly, even though there will be some unavoidable delays in EcoWorld Malaysia’s earnings recognition over the upcoming quarters as we adhere to the reduced levels of business and site operations permitted during the lockdown, this should not be any cause for concern as it is merely a timing issue," he added.
"Thanks to the high level of sales already locked in, our future revenue position as at 31 May 2021 is very healthy at RM4.21bil which provides us with both near-term cashflow as well as earnings visibility,” he said.
Meanwhile, Eco World International Bhd recorded RM283mil sales in 2Q 2021 followed by a further RM117mil in May, bringing the year-to-date value of sales contracts exchanged to RM753mil.
Including reserves of RM259mil, this adds up to total sales of RM1.01bil as at May 31.
The Group recorded a profit after tax RM11.95mil in 2Q 2021 which is lower than 2Q 2020 as a lesser number of units sold to customers were handed over in the current quarter.
EcoWorld International achieved its first repatriation of profits from its EcoWorld-Ballymore joint venture in April 2021 based on which the Board has declared a special dividend of 5 sen per share.