EcoWorld's 4Q net profit up 49% at RM29 mil, targets 100% sales value next year

KUALA LUMPUR (Dec 8): Eco World Development Group Bhd (EcoWorld) reported a net profit of RM29.35 million or 1.21 sen per share in the fourth quarter of financial year 2016 (4QFY16), a 49% increase from RM19.69 million or 0.83 per share reported in the last quarter of the preceding year.

Revenue for the group was RM740.98 million, which is 8.7% higher than the RM681.93 million reported in 4Q2015.

For the cumulative 12 months ended Oct 31, 2016,EcoWorld achieved a profit-before-tax (PBT) of RM193.2 million, on the back of revenue totalling RM2,546.4 million, which is an 161.3% increase in PBT and 48.7% increase in revenue, as compared with the preceding year.

In a filing to Bursa this afternoon, the group attributed the increase in revenue and profit in the current quarter to both strong sales achieved in current and prior years, as well as the steady progress of on-site construction works with eleven of EcoWorld’s ongoing projects.

“The Board is pleased to announce that the group successfully achieved its FY2016 sales target of RM4 billion, with sales from Malaysian projects in the final quarter of FY2016 exceeding cumulative sales for the first three of the financial year,” EcoWorld said in a press statement 

The group attributes the successful sales to EcoWorld’s Firsts Campaign which saw the launch of four projects in September 2016 — namely Eco Grandeur on the North-West of the Klang Valley, Eco Ardence off the NKVE in the Klang Valley, Eco Business Park II (EBP II) in Iskandar Malaysia and Eco Bloom @ Eco Meadows in Penang.

In addition, the group said the joint-venture between the shareholders of Bukit Bintang City Centre (BBCC) and Mitsui Fudosan Asia to own and operate the retail mall at BBCC, followed by the official launch of BBCC’s strata offices and serviced residences, also contributed to total recorded sales in 4QFY16.

For FY2017, EcoWorld targets to achieve 100% of sales value at RM4 billion gross sales from all Malaysian development projects managed by EcoWorld (including joint-ventures). 

The group will also be entitled to a proportionate share of international sales achieved by Eco World International (EWI), based on the group’s proposed 27% shareholding in EWI.

Sales from Malaysia will be contributed by EcoWorld’s 15 existing projects, along with the proposed launch of two new projects, namely Eco Forest in Semenyih and Eco Horizon on the Penang Mainland. 

Internationally, EWI’s sales will continue to be anchored by its existing four projects, while post listing, EWI will also be exploring new project acquisitions to continue to grow its development presence and market reach in its countries of focus, namely in the UK and Australia. 

For FY2018, the group intends to maintain the same target of RM4 billion gross sales from Malaysia, a 27% proportionate share of EWI sales. — theedgemarkets.com