EcoWorld Malaysia's sales off to a strong start

KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) registered sales of RM1.35bil in the first four months of its 2023 financial year, putting it on track to hit its sales target of RM3.5bil for the year.

In a statement, the property group said its Eco Business Parks industrial segment made the biggest contribution to the sales figure with sales of RM616mil.

“The group’s highly diversified product range, which now includes sizeable industrial and commercial portfolios to add to our large residential base, enabled us to achieve RM1.35bil sales in the first four months of FY23.

"Our business park segment was off to an especially strong start following a strategic sale to the Haitian Group of 92 acres of industrial lands at Eco Business Park II (EBPII) in Iskandar Malaysia,” said EcoWorld Malaysia president and CEO Datuk Chang Khim Wah.

He added that the group's sales of residential homes came to RM548mil during the same four-month period with sustained interest in its upgrader products.

These include Eco Majestic, Eco Forest, Eco Sanctuary, Eco Ardence and Eco Grandeur in the Klang Valley, Eco Botanic 1 & 2, Eco Spring, Eco Tropics in Iskandar Malaysia and Eco Horizon in Penang.

Bukit Bintang City Centre’s launch of the SWNK Houze serviced apartments and the continued sale of the Eden Condominium units at Eco Sanctuary added to the overall sales achieved.

Meanwhile, the group's commercial products contributed RM182mil in sales, which represented about 41% of the segment's full-year sales in FY22.

Announcing its results for the first quarter ended Jan 31, 2023, EcoWorld Malaysia said net profit came to RM57mil, representing earnings per share of 1.94 sen, which was 10% lower than net profit in the same quarter last year.

It said revenue in the quarter under review was RM484.73mil, down from RM533.42mil in the comparative quarter due to lower levels of works progress and site activities during the Chinese New Year festive period in January.

The group also attributed the weaker result to lower contributions due to several parcels that were substantially completed in FY22.

On the group's future outlook, Chang said the presence of a large global player such as Haitian Group at the business park will have a highly catalytic effect to draw on other upstream and downstream businesses.

"Apart from accelerating development and value creation for the remaining lands at EBP II, large technologically advanced foreign direct investments such as that of the Haitian Group are able to generate positive spillover benefits for the state and broader community through the creation of higher value jobs and increased business opportunities for locals," he said.

In light of its performance, the group said its future revenue increased to RM4.03bil as at Feb 28, 2023, which provides clear cash flow and earnings visibility.

It also reported that gross and net gearing levels as at Jan 31, 2023, stood at 0.54 and 0.33 times respectively, which it said gives it ample capacity to acquire new lands or explore strategic joint ventures to enhance its future growth prospects.

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