EcoWorld entities see mixed results in 3Q

By ALIFAH ZAINUDDIN / Pic By MUHD AMIN NAHARUL

ECO World Development Group Bhd (EWDG) and EcoWorld International Bhd (EcoWorld International) had reported mixed fortunes in the third-quarter (3Q) ended July 31, 2017.

Despite an increase in sales for the quarter, EWDG’s net profit declined 41% year-on-year to RM26.1 million from RM44.6 million reported last year, due to costs on new loans and share of initial losses incurred by joint-venture (JV) companies.

However, its revenue rose 4.9% to RM762.9 million against RM727.3 million, driven by the higher percentage of completion compounded by a higher number of units sold.

Meanwhile, EcoWorld International — which made its debut on the Main Market in April — pared its losses to RM24.4 million from a net loss of RM46.4 million reported in the previous year.

The improvement is attributed to the unrealised foreign-exchange differences from an appreciation of the British pound.

Turnover for the company remained low at RM97,000 compared to RM288,000. The lower income was due to fees for marketing services rendered by a subsidiary to the group’s JV.

In an exchange filing yesterday, the group announced that total sales achieved by the two listed entities amounted to RM3.95 billion as at Aug 31, 2017.

EWDG’s six projects in the Klang Valley contributed RM1.8 billion, while its projects in Iskandar Malaysia and Penang contributed RM525 million and RM65 million respectively.

“The strong sales pick-up of 40% in the 3Q compared to the 2Q is very encouraging.

“During the first half of the year, we were very busy handing over the first phases of properties sold and to date, we have delivered close to 4,500 units to our purchasers,” EWDG president and CEO Datuk Chang Khim Wah said in a statement.

EcoWorld International, on the other hand, recorded sales of £237 million (RM1.3 billion) from its three projects in London, while its two projects in Australia contributed A$73 million (RM249 million). EcoWorld International president and CEO Datuk Teow Leong Seng said the company’s projects in the UK have continued to see steady sales as demand for new homes and office space shows signs of recovery, despite ongoing uncertainties surrounding Brexit.

“This validates our confidence that London will retain its status as one of the world’s foremost global cities and a leading economic, financial, educational and cultural destination,” he said.

On the company’s Australian investment, Teow said EcoWorld International’s recent acquisition of an 80% stake in Eco World-Salcon Y1 Pty Ltd (EW-Salcon) signals the entry of the company into Melbourne.

“EW-Salcon is developing a lovely residential-led project known as ‘Yarra One’ which is situated in one of the city’s most popular suburbs, South Yarra,” said Teow.

Yarra One comprises a 26storey tower with 256 residential units, complemented by a retail and office podium with the potential to deliver about A$243 million in gross development value.

Following previews in early June 2017 to international customers in various major cities including Kuala Lumpur, Singapore, Jakarta and Hong Kong, sales of A$64.8 million were recorded based on contracts exchanged as at end-August.

Both EWDG and EcoWorld International expect sales to continue to improve for the rest of the year, on the back of four mega launches and ongoing roadshows correspondingly.

Shares for EWDG ended 0.6% higher yesterday at RM1.59, giving it a market capitalisation of RM4.7 billion.

Meanwhile, EcoWorld International’s shares improved by 0.9% to RM1.09 to give the company a market capitalisation of RM2.6 billion.