KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) has recorded RM1.26bil in sales during the first four months of the financial year ending Oct 31, 2024 (FY24), putting it on course to meet its sales goal of RM3.5bil.
The developer said the sales achieved accounted for 36% of its sales target for FY24 while Iskandar Malaysia projects recorded sales of RM723mil, representing 57% of total year-to-date (YTD) sales.
President and CEO Datuk Chang Khim Wah said the group is on track to achieve its FY24 sales target of RM3.5bil, with RM1.26bil sales secured in the first four months of FY24.
“Our projects in Iskandar Malaysia have performed especially well. The RM723mil secured represents 57% of the group’s total YTD sales for FY24 and 45% of full-year sales achieved in FY23 from Iskandar Malaysia.
“Apart from the increasingly high demand for properties in this region, it reflects the strength of the EcoWorld brand in Iskandar Malaysia and the solid track record we have established through our eight ongoing projects across the southern state,” Chang said in a statement.
In the first quarter ended Jan 31, EcoWorld Malaysia’s net profit rose 22.15% to RM69.6mil compared with RM57mil posted in the same quarter last year.
The higher profit was mainly due to higher interest income earned from the placement of excess funds by the group.
Revenue grew by 11% to RM537.8mil against RM484.7mil achieved last year while earnings per share climbed to 2.36 sen from 1.94 sen previously.
Its net cashflows generated from operating activities in 1Q24 amounted to RM253.4mil, 2.74 times the group’s profit before tax of RM92.4mil and more than two times the amount in 1Q23.
EcoWorld Malaysia’s gross and net gearing levels as at Jan 31 remained low at 0.52 and 0.28, respectively, even after completing the 403.78-acre Kulai land acquisition for the EBP VI project (balance 90% land price of RM190mil) and paying its FY23 final dividend (amounting to RM58.9mil) to shareholders in 1Q24.
Commenting on its performance by revenue pillars Chang said: “Sales of residential homes remain the biggest contributor, with our Eco Townships and Eco Rise pillars bringing in RM799mil or 63% of total sales as at Feb 29. These include sales from new launches of landed homes at Eco Spring and Eco Tropics in Iskandar Malaysia as well as Eco Grandeur in the Klang Valley.”
“We are also actively seeking landbanking opportunities. Given our low net gearing level of 0.28 as at Jan 31, EcoWorld Malaysia remains very well-positioned to be able to increase our landbank to further boost our growth prospects when the right opportunity comes along,” he added.