The highest percentage of sale increases are recorded by projects in Iskandar Malaysia and Penang
By AZALEA AZUAR / Pic source ecoworld.my
ECO World Development Group Bhd’s (EcoWorld Malaysia) revenue for the first quarter of 2022 (1Q22) rose 5.1% year-on-year (YoY) to RM533 million while net profit rose 1% to RM63.4 million.
These were contributed by the higher sales which grew by 40.1% to RM1.276 billion in Feb 28, 2022, from Nov 1, 2021, as well as the realisation of cost savings on completed and near completion phases.
Its joint venture developments such as Eco Grandeur, Eco Business Park V, Eco Horizon, Eco Ardence and Bukit Bintang City Centre managed to contribute higher shares this year amounting to RM28.8 million in 1Q22, an increase of 46.3% YoY.
Eco World International Bhd’s sales and reservations stood at RM1.077 billion for the past four months.
EcoWorld Malaysia’s suffered a RM1.6 million loss from its share of Eco World International results in the period as compared to a profit of RM21.8 million it enjoyed in 1Q21, due mainly to fewer sales in the UK and Australia.
EcoWorld Malaysia’s net gearing reduced further from 0.44 times (Oct 31, 2021) to 0.4 times as at Jan 31, 2022.
Among the new launches that contributed to EcoWorld Malaysia’s performance are Eco Majestic, Eco Grandeur and Eco Horizon.
“Sales in all three geographic regions grew strongly as compared to the same time last year with the highest percentage of increases recorded by our projects in Iskan- dar Malaysia, Johor, (up by 194%) followed by Penang (up by 110%).
“Our Klang Valley projects also did very well with RM709 million achieved — this represents 56% of total group sales up to Feb 28, 2022,” EcoWorld Malaysia CEO and president Datuk Chang Khim
Wah stated in a release yesterday. Another positive factor to its good 1Q22 was the lack of noticeable effect from the cessation of the government’s Home Ownership
Campaign at the end of last year. Chang noted the take-up of EcoWorld Malaysia’s new launches has been good and the property developer has been working hard to expand its product mix and customer base.
The company is now focusing on new homebuyers and young families which are instrumental to the long-term growth of vibrant townships.
“Whilst this will continue to be an important market for us, we have always had a strong following of purchasers looking for upgrader and luxury homes.
“Our launches over the last few months are geared towards serving the needs of this more aspirational market and we are delighted with the response received to date,” Chang added.
The group’s sales in its four Eco Business Parks has increased 43.9% to RM154 million in 1Q22 from RM107 million in the same period last year.
The healthy uptick in sales by the group’s industrial projects in both Iskandar Malaysia and the Klang Valley is an encouraging sign of broad-based economic recovery, he added.
“The Malaysian Investment Development Authority’s recent report of the 113.7% investment growth recorded in 2021 by the manufacturing sector also points to better days ahead, and we expect that demand for industrial pro- ducts will further increase once Malaysia fully reopens its borders on April 1,” he stated.
EcoWorld Malaysia is optimistic it would achieve RM3.5 billion sales target for 2022 due to its 1Q results.
Chang noted EcoWorld Malaysia is not spared from the impacts of rising construction costs but it is well-positioned to withstand its impact given the maturity of its land bank with the bulk of primary infrastructure already completed in prior years.
“Our efforts over the last two years to reinvent our entire business model to be more nimble, agile and efficient will also help us contain costs.
“On the product side, we are very gratified that our commitment to create value for all stakeholders — as expressed via the distinctive EcoWorld Malaysia’s DNA that is visibly evident in each of our 19 ongoing projects — is being valued and appreciated by property purchasers,” he mentioned.
The property group also continues to work closely with custo- mers in order to cater to their needs as well as deliver and build greater value which would help grow the business.