EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah.
PETALING JAYA: Eco World Development Group Bhd
(EcoWorld Malaysia) has surpassed its full-year sales target of RM3.5bil in the first 10 months of its current financial year ending Oct 31, 2024 (FY24), mainly due to strong sales from Iskandar Malaysia, Johor.
In a statement, EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah said Iskandar Malaysia was the largest contributor, accounting for 63% of year-to-date sales, followed by 27% from the Klang Valley and 10% from Penang.
“The group’s industrial segment continues to power ahead, with RM1.05bil sales achieved as at Aug 31, 2024, exceeding the full year record of RM1.04bil achieved in FY23.
“Recognising the huge potential for growth in this market, we launched our fifth revenue pillar, Quantum, on Aug 1, 2024 to focus on industrialists and service providers in the digital and high-technology space.”
For the third quarter ended July 31, 2024 (3Q24), EcoWorld Malaysia said revenue and gross profit increased by 10.4% and 27.1%, respectively, compared to 3Q23.
Gross profit margin improved from 27.2% in 3Q23 to 31.3% in 3Q24.
The group’s net profit for 3Q24 was RM80.4mil, 21.3% higher than 3Q23 and 14.8% higher than 2Q24.
Meanwhile, year-to-date 3Q24 net profit stood at RM220.1mil, an increase of 18.3% compared to the same period a year ago.
“As at July 31, 2024, net cash flows generated from operating activities amounted to RM657.6mil, 55.2% higher than the RM423.7mil generated in the prior year corresponding period.
“The group’s net gearing ratio as at July 31, 2024 further reduced to 0.21 times, from 0.24 times in 2Q24, with cash balances (including deposits and short-term funds) reaching a record high of RM1.55bil.”
As of Aug 31, 2024, EcoWorld Malaysia’s future revenue increased to RM4.49bil, providing both near and mid-term future earnings and cash flow visibility to the group, it said.
Premised on the results, the board of directors declared a second interim dividend of two sen per share in 3Q24, which is payable in October 2024. Total dividends declared to-date for FY24 amount to four sen per share.
Chang is confident that the group, through its sizeable, diversified yet complementary Eco Business Parks and Quantum pillars, will be able to meet the heightened industrial demand, catering to both traditional industrialists as well as technopreneurs and new economy players.
“Our close engagements over the last six months with global technology leaders effectively fast-tracked our evolution as an industrial developer.
“By improving our understanding of their specific needs, expectations and requirements, we have been able to better serve a wide range of players in the digital and high-tech sectors.”
Chang said the knowledge and experience would help the group improve the planning of new projects going forward, thus opening up additional avenues for EcoWorld Malaysia to enlarge its industrial property market share.
