EcoWorld to clear RM6.4b unbilled sales by 2019

By IZZAT RATNA / Graphic By TMR

EcoWorld Development Group Bhd (EcoWorld Malaysia) is expected to invoice approximately RM6.4 billion worth of unbilled sales over the next two years, in tandem with its RM3.5 billion sales projection for the financial year ending Oct 31, 2018 (FY18).

CEO Datuk Chang Khim Wah said the group would concentrate on further enhancing the value of its existing landbank and township developments, with the aim of delivering sustainable long-term growth for all stakeholders.

“By FY18, 10 projects would have transitioned from the investment into the growth phase of the project life cycle, with the bulk of primary infrastructure works completed and close to 10,000 units of properties sold handed over,” he told reporters at a media briefing in Kuala Lumpur last Friday.

He said the effort would enable the group to put in place new initiatives that would further unlock the value of its landbank that suit the growing needs of the communities working and living within its developments.

“Due to more concerted efforts to enhance existing developments, the group is not launching any sizeable new projects next year,” he added.

EcoWorld Malaysia has secured about 3.29ha of landbank with a total gross development value of RM87.5 billion located in the Klang Valley, Iskandar Malaysia and also Penang.

In total, 20 projects are earmarked, comprising upgrader as well as affordable homes, integrated high-rise developments and green business parks.

In the fourth quarter of FY17 (4Q17), EcoWorld Malaysia posted a 15% jump in net profit of RM33.71 million compared to RM29.35 million on higher revenue in 4Q16.

In the same period a year ago, its revenue surged to RM899.02 million against RM740.99 million.

Eco Majestic, Eco Sanctuary and Eco Sky in the Klang Valley; Eco Botanic, Eco Spring, Eco Summer, Eco Business Park 1, Eco Tropics and Eco Business Park III in Iskandar Malaysia; as well as Eco Meadows and Eco Terraces in Penang were among the projects that contributed to revenue and gross profit in 4Q17.

The higher revenue in 4Q17, compared to 4Q16, was due to a higher percentage and relatively more advanced stage of completion achieved by the above projects in the current quarter compared to preceding year quarter.

A year earlier, the group’s full-year FY17 net profit rose from RM129.28 million to RM209.65 million. Revenue was higher at RM2.92 billion compared to the previous RM2.55 billion.

EcoWorld also announced that its total sales successfully crossed the RM6 billion mark in FY17.

The group met its FY17 sales target with RM4 billion sales in Malaysia, while EcoWorld International Bhd saw its total

cumulative sales increasing by RM2.42 billion from RM5.29 billion as at the end of FY16, to RM7.71 billion by end-FY17.

The bulk of the total sales were attributed to its eight projects in the Klang Valley, which contributed about RM3 billion, while the remaining RM1 billion came from seven projects in Iskandar Malaysia and three projects in Penang.

This year, EcoWorld Malaysia launched five projects in total; the Eco Horizon in Penang, Eco Forest in Southern Klang Valley and Eco Business Park V in northern Klang Valley. The other two are new phases within the group’s existing townships namely Dremien at Eco Ardence in Shah Alam and Whitten at Eco Majestic City in Semenyih.