The group recorded sales of RM1.26bil in the first four months of FY24.
PETALING JAYA: Eco World Development Group Bhd
(EcoWorld Malaysia), which reported growth in its earnings for the first quarter (1Q) of its financial year ending Oct 31, 2024 (FY24), is seeking land banking opportunities.
President and chief executive officer Datuk Chang Khim Wah said the group is well-positioned to expand its land holdings to fuel growth given its low net gearing ratio of 0.28 times as of the end of 1Q24.
“EcoWorld Malaysia remains very well-positioned to increase our land bank to further boost our growth prospects when the right opportunity comes along,” he said in a statement on its 1Q24 results.
For 1Q24, the property developer saw its revenue rise by 11% to RM537.79mil from the RM484.73mil reported in the previous corresponding quarter.
Net profit, on the other hand, surged by 22% to RM69.63mil for the quarter under review compared with RM57mil recorded in 1Q23.
The growth in its bottom line was attributed to the higher interest income earned from the placement of excess funds by the group’s Malaysian operations and better contributions from its joint ventures.
To note, the group has cash balances of over RM1bil as of the end of its 1Q24.
EcoWorld Malaysia said the share of results of its joint ventures for 1Q24 was 9.4% higher than 1Q23 due to Eco World International Bhd (EWI) recording a profit instead of a loss.
The group recorded sales of RM1.26bil in the first four months of FY24, representing 36% of its full-year target.
Chang said the group is on track to achieve its FY24 sales target of RM3.5bil, expressing optimism on its Iskandar Malaysia projects.
To note, the group had secured sales totalling RM723mil, representing 57% of its total year-to-date sales for FY24.
“Apart from the increasingly high demand for properties in this region, it reflects the strength of the EcoWorld brand in Iskandar Malaysia and the solid track record we have established through our eight ongoing projects across the southern state,” he said.
The group has five mature townships and three business parks under development, with new tracts of land recently acquired for its upcoming Eco Business Park VI (403 acres in Kulai) and Eco Botanic 3 (240 acres in Iskandar Puteri) projects.
Commenting on the group’s performance by revenue pillars Chang said sales of residential homes remained as the biggest contributor with its Eco Townships and Eco Rise bringing in RM799mil or 63% of total sales as of Feb 29.
“The momentum for our Eco Business Parks pillar remains very strong, with RM298mil sales recorded in four months, comprising ready-built factories and small plots of industrial lands for built-to-suit factories,” he said, adding that this contributed about 24% of its total revenue.
Shares of EcoWorld Malaysia inched up five sen or 3.45% to RM1.50 each yesterday.
