Property News

EcoWorld Malaysia achieves RM2.4b sales in seven months

KUALA LUMPUR (June 22): Eco World Development Group Bhd recorded RM2.4 billion sales in seven months of FY2023, representing 68.5% of the group’s FY2023 sales target. This is higher than the RM2.17 billion recorded in the same period of FY2022, the developer announced in a media release today.
Demand for the products of Eco Business Parks (EBP) remains very strong with seven-month year-to-date sales reaching RM838 million, which is 111.3% of FY2022 full year EBP sales of RM753 million.
Sales of residential homes have also exceeded RM1.22 billion as at May 31, 2023 representing 51% of total year-to-date sales achieved. The largest contributors continue to be homes priced above RM650,000 “testament to the sustained demand for the group’s higher-end products”, it said.
Meanwhile, commercial products contributed RM341 million to total year-to-date sales with good takeups for new launches and continuing sales of various retail, shop and office units at the group’s matured Klang Valley and Iskandar Malaysia townships.
The strong sales achieved increased future revenue to RM4.29 billion as at May 31 2023, providing clear earnings and cashflow visibility.
EcoWorld Malaysia recorded RM420.8 million revenue and RM107.6 million gross profit in 2Q2023, with gross profit margin improving to 25.6% from 23.1% in 2Q2022.
Malaysian joint ventures (JV) contributed profits of RM24.1 million in 2Q2023 which is 47.4% higher than 2Q2022. This enabled Malaysian operations to record a profit after tax (PAT) of RM62.4 million in 2Q2023, which is above the RM61.2 million recorded in 2Q2022.
EcoWorld International contributed a RM0.3 million profit in 2Q2023 versus a loss of RM15.6 million in 2Q2022. This was mainly due to higher foreign exchange gain, higher interest income following repayments received from its UK JVs and lower finance costs incurred in 2Q 2023.
Including the share of EcoWorld International’s results, the group achieved RM62.7 million PAT for 2Q2023 which is 37.3% higher than 2Q 2022.
As at April 30, 2023, EcoWorld Malaysia’s gross and net gearing levels stand at 0.53 and 0.31 times, respectively.
Based on the strong performance achieved, the Board of Directors has declared a two sen interim dividend in 2Q2023 which is payable on July 20, 2023.
Sustained demand for Eco World’s residential products
“The strong sales performance achieved by EcoWorld Malaysia across all our market segments from residential to commercial and industrial have enabled us to lock in 68.5% of our full year sales target in just seven months. Our industrial portfolio continues to outperform with RM838 million achieved year-to-date which represents 111.3% of FY2022 full year sales from this segment. This is significant because last year was already a record year in terms of the Group’s EBP sales,” said Datuk Chang Khim Wah, president & CEO of EcoWorld Malaysia.
“We also saw sustained demand for the group’s residential products, particularly our upgrader homes. Total residential sales have exceeded RM1.22 billion, making up 51% of year-to-date sales achieved. The largest contributors in the first half of FY2023 have been higher-priced upgrader homes with very good take-ups observed for all our new launches in the Klang Valley, Iskandar Malaysia and Penang that were tailored to appeal to this segment of the market,” he added.
“Moving ahead, we will be launching several series of duduk apartments to meet the needs of first-time homeowners and those seeking to own homes at more attainable price points. Our recent March 2023 launch of Hana D’ Eco Ardence, the latest in our duduk series, was very well received with 245 units taken up in less than two months. These apartments have been thoughtfully designed to offer a wide and comprehensive range of amenities to residents that will meet the lifestyle needs of every generation. Registrations for upcoming launches of other new duduk apartments planned for the rest of 2023 have been very encouraging.
“We look forward to bringing this very popular product to customers at our other matured townships in the Klang Valley, Iskandar Malaysia and Penang,” Chang said.
“Our commercial precincts have also done well. The seven-month sales achieved of RM341 million is already 76.5% of FY2022 full year sales from this segment. We are gratified that increasingly more investors and business owners are drawn to purchase and set up their businesses at the retail shops and offices situated within our matured townships. Many have shared that they were attracted by our relatively more affluent, diverse and fast-growing population base with good patronage from other surrounding communities. This will continue to add to the vibrancy of our commercial precincts which further enhances the liveability and overall appeal of our many townships,” he said.

Source: EdgeProp.my