Eco World Malaysia post Q1 net profit of RM21.39m

PETALING JAYA: Eco World Development Group Bhd (EcoWorld Malaysia) saw a lower net profit of RM21.39 million for its second quarter ended April 30, 48% lower from Q2’20’s net profit of RM41.17 million on the mandatory closure of all its sales galleries and construction sites throughout the movement control order (MCO) period.

Revenue also was lower at RM345.4 million, from RM543.18 million.

On a cumulative basis, the group saw a net profit of RM54.9 million on revenue of RM883.35 million, compared with RM71.49 million and RM1.03 billion respectively in the previous corresponding quarter.

As at June 15, EcoWorld Malaysia’s sales for FY2020 have reached RM975 million – enabling its future revenue position to remain high at RM4.6 billion.

In addition, the group has a further bookings pipeline of approximately RM600 million which it is working to convert into secured sales over the next few months.

For Eco World International Bhd, it recorded a net profit of RM20.06 million, from a net loss of RM11.98 million previously. Revenue stood at RM113,000.

EcoWorld International’s sales improved in 2Q ‘20 despite various Covid-19 measures imposed

in both the UK and Australia.

Sales momentum gained further strength in the first six weeks of 3Q’20, bringing total YTD sales as at June 15 to RM808 million.

“The group’s mid-market projects under EcoWorld London have enjoyed resilient local demand

throughout. International demand is also on the rise for its other UK projects with recent strong

buying from Hong Kong as well as growing interest from other global markets,” it said.

EcoWorld International has also garnered increased institutional interest for its build-to-rent (BtR) properties in the UK and is targeting to close a BtR deal within the current financial year.

EcoWorld Malaysia president & CEO Datuk Chang Khim Wah said that while sales have rebounded strongly for the group, the widespread disruption caused by the Covid-19 pandemic did have one unfortunate consequence.

This is in relation to the proposed joint-venture with the PowerChina Group to jointly develop 117 acres of land at Eco Business Park (EBP) V which was announced in FY19

“PowerChina was not able to obtain the Chinese Outbound Investment Approval for its investment into the project.

“Accordingly, the parties are in the midst of discussion to mutually terminate the joint venture agreement and the sale and purchase agreement with the JVCo for the project land. Following the termination, the 117 acres will be developed by the Group directly as part of its overall EBP V development,” he said.

With regards the Group’s prospects for the rest of FY2020, Chang believes that the strong momentum since the start of the conditional MCO will be sustained.

“We are also working hard to launch the products under our new Duduk brand in 4Q ‘20. Duduk offers a fresh perspective on vertical township living and we have two new projects, Huni @ Eco Ardence and Se.Ruang @ Eco Sanctuary comprising 1,000 sq ft semi-furnished apartments priced below RM400,000 to cater to the needs of the M40 group,” Chang said.

source https://www.thesundaily.my/business/eco-world-malaysia-post-q1-net-profit-of-rm2139m-EA2626372