EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah.
PETALING JAYA: Eco World Development Group Bhd
(EcoWorld Malaysia) recorded sales totalling RM2.18bil in the first seven months of financial year 2024 (FY24), representing 62% of its sales target for the financial year.
In a statement yesterday, the property developer also said its projects in Iskandar Malaysia continued to outperform with RM1.33bil sales achieved, representing 61% of total sales between November 2023 and May 2024.
“From a segmental perspective, all four of the group’s revenue pillars performed strongly,” it said, referring to Eco Townships, Eco Rise, Eco Hubs and Eco Business Hubs.
Given the encouraging sales, EcoWorld Malaysia noted that its future revenue has increased to RM4.03bil as at May 31.
The group also announced that its revenue and gross profit for the second quarter of the financial year ending Oct 31, 2024 (2Q24) rose by 32.1% year-on-year (y-o-y) and 37.1% y-o-y, respectively.
Gross profit margin improved to 26.5% in the latest second quarter.
“The group’s profit after tax (PAT) from Malaysian operations was 14.2% higher than 2Q23.
“PAT for 2Q24 (including Eco World International Bhd) was RM70mil, 11.7% higher than 2Q23,” EcoWorld Malaysia said.
Cumulatively, for the first six months ended April 30, 2024, the group recorded PAT of RM139.7mil, an increase of 16.7% y-o-y.
As at April 30, the net cash flows generated from operating activities amounted to RM470mil.
EcoWorld Malaysia’s net gearing ratio as at April 30, 2024 stands at 0.24 times, a decrease from 0.28 times in 1Q24.
According to EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah, the lower gearing level provides the group with a substantial war chest to acquire more landbank which it is actively seeking.
It also allows the group to continue rewarding its shareholders with good dividend payments.
EcoWorld Malaysia’s board of directors declared an interim dividend of two sen in 2Q24, which is payable on July 19, 2024.
Commenting on the group’s sales, Chang said the sales of residential homes under its Eco Townships pillar remain the largest segment with RM855mil recorded, of which 90% comprised upgrader homes priced above RM650,000.
“Our Eco Rise pillar is also fast gaining ground as a significant driver of the group’s sales. In particular, the duduk series – created to serve the needs of first-time and young homeowners, have become increasingly popular.
“Group-wide, the duduk series contributed RM612mil in sales up to May 31, 2024.”
On the commercial front, Chang said products under the Eco Hubs pillar have seen steady demand, recording sales of RM235mil in the November 2023 to May 2024 period.
He said the group is well-positioned to ride the current strong wave of demand in the industrial market, especially in the southern region.
“Sales amounting to RM420mil have been recorded under our Eco Business Parks (EBP) pillar up to May 31, 2024 and demand shows no sign of slowing down.
“On June 7, 2024, we entered into an agreement to sell 123.14 acres of industrial land located within EBP VI to Microsoft Payments (M) Sdn Bhd for RM402.3mil.
“This is the first sale for EBP VI in Kulai, Iskandar Malaysia, and we are confident the planned development of a data centre there by Microsoft will amplify demand for our other industrial products,” stated Chang.
