Eco World's Q2 net profit jumps over 37pct, revenue eases

KUALA LUMPUR: Eco World Development Group Bhd's net profit grew 37.3 per cent to RM62.69 million for the second quarter ended April 30, 2023 (2Q23) from RM45.67 million a year ago.

In a filing to Bursa Malaysia today, the property developer said the profit was underpinned by cost savings realised upon finalisation of accounts of certain completed phases in 2Q23. 

Revenue for the quarter eased to RM420.82 million from RM506.9 million previously, while earnings per share (EPS) rose to 2.13 sen from 1.55 sen, the company said in a filing with Bursa Malaysia today. 

EcoWorld noted that the main projects which contributed to revenue and gross profit in 2Q23 were Eco Majestic, Eco Forest and Eco Sanctuary in the Klang Valley, Eco Botanic, Eco Botanic 2, Eco Spring, Eco Business Park I, Eco Business Park II, Eco Tropics and Eco Business Park III in Iskandar Malaysia and Eco Terraces in Penang. 

For the first half ended April 30 (1HFY23), EcoWorld registered a higher net profit of RM119.7 million from RM109.04 million a year ago, while revenue fell to RM905.56 million from RM1.04 billion. 

EcoWorld recorded RM2.4 billion sales in the seven months of FY23 representing 68.5 per cent of its FY23 sales target, which was higher than the RM2.17 billion recorded in the same period of FY22. 

Demand for the products of the company's Eco Business Parks (EBP) remains very strong with seven-month year-to-date sales reaching RM838 million, which is 111.3 per cent of FY22 full-year EBP sales of RM753 million. 

The company added that the strong sales achieved increased future revenue to RM4.29 billion as at May 31, 2023, providing clear earnings and cashflow visibility. 

Based on the strong performance achieved, the board of directors declared a two sen interim dividend in 2Q23 payable on July 20, 2023. 

EcoWorld Malaysia president and CEO of Datuk Chang Khim Wah said the company will launch several series of "duduk" apartments to meet the needs of first-time homeowners and those seeking to own homes at more attainable price points. 

He noted that the company's recent March 2023 launch of Hana D' Eco Ardence, the latest in its "duduk" series, was well received with 245 units taken up in less than two months. 

"These apartments have been thoughtfully designed to offer a wide and comprehensive range of amenities to residents that will meet the lifestyle needs of every generation.  

"Registrations for upcoming launches of other new 'duduk' apartments planned for the rest of 2023 have been very encouraging. 

"We look forward to bringing this very popular product to customers at our other matured townships in the Klang Valley, Iskandar Malaysia and Penang," he said.

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