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KUALA LUMPUR (Dec 13): Eco World Development Group Bhd's (EcoWorld) net profit doubled to RM68.53 million or 2.33 sen a share in the fourth quarter ended Oct 31, 2018 (4QFY18), from RM33.7 million or 1.14 sen a share.

In a filing to Bursa Malaysia, EcoWorld attributed the higher earnings to the profitable share of results in joint ventures (JVs) of RM36.43 million, against a loss-making share of results in JVs of RM11.71 million a year ago.

Additionally, lower selling and marketing expenses of RM27.9 million and a decrease of RM10.2 million in administrative expenses contributed to the higher net profit.

Its quarterly revenue, however, was 32.79% lower at RM607.58 million, versus RM904.06 million due to completion of some major projects and delivery of a significant number of completed property units to customers by subsidiaries.

For its full financial year ended Oct 31, 2018 (FY18), EcoWorld's net profit declined 21.02% to RM165.59 million or 5.62 sen per share from RM209.65 million or 7.25 sen per share, while its revenue was down 26.04% to RM2.17 billion, from RM2.94 billion.

Moving forward into FY19, EcoWorld acknowledged that the property sector, both within and outside Malaysia, will continue to face substantial headwinds.

Nonetheless, with earnings visibility for the upcoming year substantially secured through carried forward progress billings, EcoWorld said the board has set a RM6 billion sales target for EcoWorld over the next two years.

Similarly, the board of EcoWorld International Bhd (EWI) has set a sales target of RM6 billion over the next two years.

"On a combined basis, the sales target to be achieved from FY2019 to FY2020 for the EcoWorld brand in Malaysia, UK and Australia, is therefore RM12 billion," said EcoWorld, adding that this extended time-frame will provide greater flexibility for appropriate strategies to be crafted to realise optimal value from the group's and EWI's landbank in Malaysia, UK and Australia which management is confident will be achieved.

The property developer also noted that the large number of maturing projects in Malaysia and the increase in new projects secured by EWI will continue to provide the EcoWorld brand with a strong foundation on which to anchor its growth ambitions and assures the sustainability of the group's business model going forward.

At the noon break, EcoWorld's shares were down half a sen or 0.52% at 96.5 sen, the lowest in six years, valuing it at RM2.86 billion. Over the past year, the stock fell 35.32% from RM1.49. theedgemarkets.com

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