Eco World 2Q revenue up q-o-q at RM418 mil

KUALA LUMPUR (June 17): Eco World Development Group Bhd reported a 286% jump in net profit to RM11.81 million in the second quarter from RM3.06 million in the preceding first quarter. Revenue rose to RM417.82 million from RM158.03 million.

As Eco World has changed its financial year from Sept 30 to Oct 31, there were no comparative figures from a year earlier.

However, Eco World’s income statement had provided on-year comparative figures for the quarter ended March 31 as a reference.

According to the income statement, net profit for the quarter fell to RM2.57 million from RM6.67 million a year earlier. Revenue fell to RM26.85 million from RM33.54 million.

Eco World attributed the weaker financials to lower sales and revenue recognition from the group’s existing developments.

The firm also said it did not actively launch any sizeable new tracks at its Kota Masai project in Johor as the developer was reviewing its master plan. The review is intended to create two separate and complementary developments adjacent to one another, according to Eco World.

Looking ahead, Eco World said it was confident of its prospects as the company would take on more real estate projects in the near future.

The group said it expected to take on 11 projects across the Klang Valley, Penang and Johor compared to three projects currently.

"Following the announcement of a series of corporate proposals on April 25, 2014 (Corporate  Exercise), the group’s land bank is set to be enlarged significantly from 1,326 acres to 4,433 acres with a corresponding increase in gross development values from RM13.49 billion to RM43.53 billion.
 
"With so many exciting new developments, the groundwork has been laid for a period of transformative growth for the Group, the resultant benefits of which are expected to be progressively reflected in the financial results in the years ahead," Eco World said.

Eco World shares fell three sen or 2% at 12.30pm to settle at RM1.48 for a market capitalisation of RM3.5 billion.

The stock saw 990,700 shares traded.