EcoWorld optimistic of RM2.9b sales target

by SHAHEERA AZNAM SHAH / pic source: EcoWorld

ECO World Development Group Bhd (EcoWorld Malaysia) is optimistic on achieving its sales target of RM2.88 billion for financial year 2021 (FY21), banking on its future residential launches and the high take-up rate of its industrial projects.

The property developer said it will be launching Eco Botanic 2 in the second quarter of 2021 (2Q21), a landed residential project which offers homes priced from RM500,000 to RM800,000 in Iskandar Malaysia, Johor.

The group also expects its four Eco-Business Parks in the Senai, Pasir Gudang and Tebrau corridors of Iskandar Malaysia, as well as Puncak Alam in the Klang Valley, to continue to record steady sales, supported by strong local demand, particularly from the warehousing and logistics sectors.

“The group’s Eco Business Park project has seen a good take-up with RM107 million in sales achieved as of Feb 28, 2021, close to 50% of the RM220 million achieved in FY20.

“With the commencement of the Covid-19 vaccination programme, this should lead to the easing of cross-border business travel which will further boost demand as inquiries from foreign industrialists are translated into sales,” the group said yesterday.

In its 1Q21, EcoWorld Malaysia’s net profit jumped 71% to RM62.43 million from RM36.51 million made last year, supported by cost-saving measures implemented in FY20.

It said measures have reduced the group’s overall cost base moving forward, enabling administrative expenses to be reduced by 15.7% which is partly contributed to the increase in profit achieved in the current quarter.

However, its revenue fell 5.69% to RM507.35 million from RM537.95 million due to the lower levels of site activity recorded by the developer’s matured projects during the quarter.

The main projects that contributed to EcoWorld Malaysia’s lower revenue in 1Q21 were Eco Majestic, Eco Forest, Eco Sanctuary and Eco Sky in the Klang Valley; Eco Botanic, Eco Spring, Eco Summer, Eco-Business Park I, Eco-Business Park II, Eco Tropics and Eco Business Park III in Iskandar Malaysia; and Eco Meadows and Eco Terraces in Penang.

Meanwhile, Eco World International Bhd’s (EcoWorld International) net profit jumped tenfold in its 1Q21 to RM56.03 million from RM5.19 million, mainly due to the commencement of revenue and profit recognition of its Yarra One project in Melbourne, following the progressive handover of units sold to customers.

Its revenue for the quarter also surged to RM303.28 million from RM51,000.

EcoWorld International declared a first interim dividend of one sen per share for the current financial year, payable on April 28, 2021.