EcoWorld Group records higher profit, revenue in FY19

KUALA LUMPUR: Eco World Development Group Bhd recorded a higher profit of RM203.42 mil in the financial year ended Oct 31, 2019 (FY2019), from RM93.49 mil in the previous year.

Revenue also surged, to RM2.46 bil from RM1.98 bil previously, the property developer said in a filing with Bursa Malaysia on Dec 12.

The group attributed its performance to its main projects – 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 in Penang.

“The higher revenue was mainly due to the strong recovery in sales after the launch of the National Home Ownership Campaign (NHOC) on March 1, 2019, and the higher percentage of projects completed,” it said.

Meanwhile, its 27%-owned associate, Eco World International Bhd, swung into the black in FY2019 with a profit of RM187 mil against a loss of RM11.23 mil in 2018.

Revenue, however, slipped to RM478,000 from RM1.3 mil previously.

Moving forward, the group said it would introduce a new range of houses next year, priced from RM300,000 to RM450,000, to capitalise on the excellent infrastructure and lifestyle amenities within existing EcoWorld townships.

“This will provide a greater element of choice to customers and broaden the group’s market appeal and set it on a strong and sustainable growth path in the years ahead,” it said.

Meanwhile, president and CEO Datuk Chang Khim Wah said Eco World Development Group Bhd is confident that it will achieve its two-year RM6 bil sales target by the financial year ending Oct 31, 2020 (FY2020), driven by encouraging buying sentiments which are expected to continue into next year.

The buying pattern for its projects showed an uptrend in the last two months of FY2019, signalling a recovery in the property market, he told reporters on Dec 12.

The RM6 bil sales target spans two financial years, FY2019-FY2020, and so far, the group has managed to secure RM2.7 bil in sales.

“Through our existing township and integrated commercial projects, we can see that the buying trend in the last two months was very strong,” he added.

Despite the current challenging economic environment, Wah said EcoWorld’s designs and project deliveries are expected to allow the group to continue the positive buying momentum into FY2020.

Currently, the group has about 1,780.62ha of undeveloped land across the country, as well as ongoing projects in Penang, the Klang Valley and Iskandar Malaysia, comprising residential and commercial townships, industrial parks as well as integrated commercial developments. – Bernama

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