EcoWorld Malaysia on track to meeting FY23 target with sales of RM3.06bil

KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) achieved sales of RM3.06bil in the first 10 months of its financial year, which put it on track to meeting its FY23 sales target of RM3.5bil.

In a statement, the property developer reported that Eco Business Parks achieved a record-breaking RM997mil in sales during the period, which was 132.4% of FY22 full-year industrial sales and almost one-third of the group's year-to-date sales.

Sales in the residential homes segment meanwhile exceeded RM1.63bil as at Aug 31, 2023, which represents 53.3% of the group's total sales to-date.

According to EcoWorld Malaysia, homes priced above RM650,000 remained the largest contributor to the segment.

The group's commercial products hit RM432mil in 10 months, which came close to FY22 full-year commercial sales of RM446mil, on the back of shop and office units launched during the year in the group's matured townships.

In the third quarter ended July 31, 2023, EcoWorld Malaysia recorded a net profit of RM66.34mil, up from RM46.39mil in the same quarter in 2022.

Earnings per share in the quarter under review rose to 2.25 sen from 1.58 sen previously.

The group's revenue meanwhile was RM476.85mil, up from RM443.97mil in 3QFY22.

The board of directors declared a second interim dividend of two sen per share, payable on Oct 19, 2023, which brings its year-to-date dividend to four sen per share.

EcoWorld Malaysia reported that gross profit margin during the quarter under review improved from 23.5% to 27.2% due to improved product pricing, site progress achieved and cost savings realised on certain completed phases in 3QFY23.

The group's share of joint ventures in 3QFY23 was 45.7% higher than in 3QFY22 due to lower losses recorded by Eco World International Bhd.

Over the nine months period, EcoWorld Malaysia reported a net profit of RM186.03mil as compared to RM155.43mil in the same period in FY22, while revenue was RM1.38bil compared to RM1.48bil previously.

On the group's balance sheet, EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said the gearing levels have remained low with a steady reduction in bank borrowings since the start of the financial year.

As at July 31, 2023, gross and net gearing levels stood at 0.51 and 0.31 respectively, with bank borrowings reduced to RM2.5bil versus RM2.8bil at the start of FY23, he said.

"Meanwhile our future revenue continues to be high at RM4.22bil, providing good cashflow and earnings visibility," he added.

Chang noted that EcoWorld Malaysia's 27% stake in Eco World International will entitle it to a second tranche dividend of RM38.88mil, based on the latter's payout of RM144mil from its excess cash in December 2023.

This is in addition to the group's RM214mil share of Eco World International's RM792mil dividend payout on Sept 29, 2023.

"All these dividends from EWI will further strengthen EcoWorld Malaysia’s future cash and net gearing positions upon receipt.

"Accordingly, we are well-positioned to be able to continue rewarding our shareholders with dividends whilst also pursuing good opportunities to acquire more landbank that will enhance the Group’s future growth prospects,” said Chang.

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EcoWorld , real estate , Chang Khim Wah


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