EcoWorld Malaysia’s 1Q2024 profit after tax increases by 22.2%, RM1.26 bil sales achieved in four months

• The group’s Iskandar Malaysia projects outperformed strongly with RM723 million sales achieved, representing 57% of total year-to-date sales.

KUALA LUMPUR (March 21): Eco World Development Group Bhd recorded profit after tax for 1Q2024 (including Eco World International or EWI) of RM69.6 million, 22.2% higher than 1Q2023.

It also saw RM1.26 billion sales in the first four months of FY2024, representing 36% of the company’s FY2024 sales target.

The group’s Iskandar Malaysia projects outperformed strongly with RM723 million sales achieved, representing 57% of total year-to-date (YTD) sales, stated EcoWorld in a media release on the results.

“The breadth and depth products which EcoWorld Malaysia is able to offer property buyers across four diversified revenue pillars contributed to the positive sales performance,” it added.

The sales achieved increased EcoWorld’s future revenue to RM3.88 billion as at Feb 29, 2024. Revenue and gross profit for 1Q2024 increased by 10.9% and 1.6%, respectively.

The group’s share of results of its joint ventures for 1Q2024 was 9.4% higher than 1Q2023 due to EWI recording a profit instead of a loss.

The increase in profit after tax was mainly due to higher interest income earned from the placement of excess funds by the group’s Malaysian operations and EWI’s profit in 1Q2024 versus a loss in the prior year corresponding quarter.

Net cashflows generated from operating activities in 1Q2024 amounted to RM253.4 million, 2.74 times the group’s profit before tax of RM92.4 million and more than two times the amount in 1Q2023.

EcoWorld’s gross and net gearing levels as at Jan 31, 2024 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 RM190 million) and paying its FY2023 final dividend (amounting to RM58.9 million) to shareholders in 1Q2024.

“The group is on track to achieve our FY2024 sales target of RM3.5 billion, with RM1.26 billion sales secured in the first four months of FY2024. Our projects in Iskandar Malaysia have performed especially well,” said Datuk Chang Khim Wah, president & CEO of EcoWorld Malaysia.

“Our roots in Iskandar Malaysia go deep given that the EcoWorld brand was birthed here in 2013 with the launch of our Eco Botanic township. Today we have 5 matured townships and 3 business parks under development, with 2 sizeable new tracts of land recently acquired for our upcoming Eco Business Park VI (403.78 acres in Kulai) and Eco Botanic 3 (240.314 acres in Iskandar Puteri) projects,” said Chang.

“Sales of residential homes remain the biggest contributor, with our Eco Townships and Eco Rise pillars bringing in RM799 million or 63% of total sales as at Feb 29, 2024. 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.

“Our duduk series of affordable apartments are now present in the Central, Northern and Southern regions. We recently launched Sa.Young D’ Eco Botanic in Iskandar Malaysia which was snapped up by young homeowners and savvy investors drawn to the vibrant lifestyle amenities of Eco Botanic with numerous international universities located in the immediate vicinity of the project.

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“We are also preparing for the launch of Se.Duduk D’ Kajang, our first duduk apartments to be developed outside an EcoWorld township. Pre-marketing for this project has been very encouraging, which opens up possibilities for further acquisitions of small strategic parcels of residential lands in matured locales to propel the growth of our Eco Rise pillar,” added Chang.

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