• This is more than the RM1.28 billion achieved in the same period of FY2022 and it represents 38.5% of the group’s FY2023 sales target of RM3.5 billion.
  • The Eco Business Parks (EBP) industrial segment recorded the highest sales, contributing RM616 million, making up 46% of total year-to-date sales achieved, which were boosted by strong demand from “local and international industrialists”.

KUALA LUMPUR (March 23): Eco World Development Group Bhd (EcoWorld Malaysia) recorded RM1.35 billion sales in the first four months of FY2023, the company stated in its 1Q2023 results announcement.

This is more than the RM1.28 billion achieved in the same period of FY2022 and it represents 38.5% of the group’s FY2023 sales target of RM3.5 billion.

The Eco Business Parks (EBP) industrial segment recorded the highest sales, contributing RM616 million, making up 46% of total year-to-date sales achieved, which were boosted by strong demand from “local and international industrialists”.

Meanwhile, sales of residential properties came up to  RM548 million in the first four months of FY2023 “with sustained interest in EcoWorld Malaysia’s upgrader products”, stated the developer.

EcoWorld Malaysia’s future revenue also increased to RM4.03 billion as at Feb 28, 2023, “providing clear cashflow and earnings visibility”.

The group’s revenue and share of results from Malaysian joint ventures for 1Q2023 were however 9.1% and 18.9% lower respectively, than 1Q 2022. This was mainly due to lower levels of work progress and site activities in 1Q 2023 due to the earlier Chinese New

Year festive period in January this year, and lower contributions in 1Q2023 from several parcels which were substantially completed in FY2022.

Despite lower revenue, gross profit in 1Q2023 was higher than 1Q2022 by 10.4% and gross profit margin improved to 26.1% in 1Q2023 versus 21.4% in 1Q2022 owing to cost savings realised on completed phases. As a result, this contributed to the profit after tax of RM57 million achieved for 1Q2023.

The group’s gross and net gearing levels as at Jan 31, 2023 remain low at 0.54 and 0.33 times respectively, giving the EcoWorld Malaysia “ample capacity to acquire new lands or explore strategic joint ventures to enhance its future growth prospects”.

“The group’s highly diversified product range, which now includes sizeable industrial and commercial portfolios to add to our large residential base, enabled us to achieve RM1.35 billion sales in the first four months of FY2023,” said president and CEO of EcoWorld Malaysia, Datuk Chang Khim Wah.

“Our business park segment was off to an especially strong start following a strategic sale to the Haitian Group of 92 acres of industrial lands at EBP II in Iskandar Malaysia,” he added.

EcoWorld Malaysia stated that Haitian Group “is a leading industrial equipment manufacturer from China specialising in the production of a wide range of energy saving, eco-friendly and high precision industrial machines and solutions”.

“We are gratified that the Haitian Group chose to work with EcoWorld when they were looking for a suitable site to establish a substantial manufacturing base in Malaysia. This landmark deal is the result of many years of concerted efforts by our team to build up our network and actively pursue leads with multinational industrialists,” Chang said.

“The presence of such a large global player at our business park will have a highly catalytic effect to draw in other upstream and downstream businesses. Apart from accelerating development and value creation for the remaining lands at EBP II, large technologically advanced foreign direct investments such as that of the Haitian Group are able to generate positive spillover benefits for the State and broader community through the creation of higher value jobs and increased business opportunities for locals,” he explained.

In addition to the above, sales of cluster, semi-dee and service factories at EBP I & EBP III in Iskandar Malaysia and EBP V in the Klang Valley, as well as smaller plots of industrial lands for built to-suit factories at EBP V, also contributed to the RM616 million achieved by the group’s industrial segment.

Commercial products contributed RM182 million sales which is approximately 41% of the actual FY2022 full year sales from this segment. In the Klang Valley, shops and shopoffices at Hana Square @ Eco Ardence saw good take-ups and down south in Iskandar Malaysia, sales picked up for retail, shop and office units at Eco Galleria @ Eco Botanic, Eco Boulevard 2 @ Eco Botanic 2, Eco Palladium @ Eco Spring as well as Eco Biz 3 @ Eco Tropics. The products are all located within matured townships and the encouraging sales performance demonstrates the commercial vibrancy of the EcoWorld projects that have increasingly attracted more retailers, F&B operators and other businesses to be established there.

“Our core residential business saw total sales of RM548 million in the first four months of FY2023. We continued to see sustained interest in our upgrader products. Demand remained strong for our cohomes, garden homes, cluster homes, terraces and semi-dees available at Eco Majestic, Eco Forest, Eco Sanctuary, Eco Ardence and Eco Grandeur in the Klang Valley, Eco Botanic 1 & 2, Eco Spring, Eco Tropics in Iskandar Malaysia and Eco Horizon in Penang. Bukit Bintang City Centre’s launch of the SWNK Houze serviced apartments and the continued sale of the Eden Condominium units at Eco Sanctuary added to the overall sales achieved,” added Chang.

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