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Friday, 16 June 2017

(The Star) Eco World hits RM1.7bil sales

PETALING JAYA: Eco World Development Group Bhd sold RM1.71bil worth of properties across Malaysia in the first seven months of its current financial year ending Oct 31, 2017 (FY17).

The property developer said the sales were 30% higher than the RM1.3bil sales achieved in the same period in FY16.

It attributed the bulk of the sales to six of its projects in the Klang Valley, which chalked up sales of RM1.33bil. The rest of the sales of RM376mil were contributed by its seven projects in Iskandar Malaysia as well as two projects in Penang.

Eco World president and CEO Datuk Chang Khim Wah said: “We are fortunate that our projects have been enjoying positive momentum especially the three large-scale developments in the Klang Valley that were launched at the end of the last financial year.”

The said projects are Eco Ardence in Shah Alam, Eco Grandeur in Puncak Alam and Bukit Bintang City Centre (BBCC).

On the outlook, Chang is optimistic and said that Eco World is well positioned to achieve its RM4bil sales target in FY17.

The sales he said would be driven by three new project launches, namely, Eco Forest and Eco Business Park V in the Klang Valley as well as EcoHorizon in Penang.

“These projects are expected to contribute towards the group’s sales in the fourth quarter of FY17,” he said in a statement yesterday.

As at May 31, Eco World’s unbilled sales stood at RM6.32bil, with RM4.9bil contributed by its Malaysian projects, with the remaining RM1.42bil being its effective share of the sales secured by Eco World International Bhd (EWI), the overseas arm of Eco World.

Eco World posted a net profit of RM33.68mil in the second quarter ended April 30, marginally lower than the RM34.67mil achieved in the same period last year. a year ago.

During the quarter, the company posted a 9% jump in revenue to RM670mil from RM614.6mil.

For the first half of its FY17, Eco World’s net profit surged 171% to RM149.85mil against RM55.35mil a year ago. Its revenue rose 17.8% to RM1.26bil from RM1.07bil previously.

In a separate filing to Bursa Malaysia, EcoWorld’s 27%-owned EWI saw its net loss narrow to RM24.8mil for the second quarter ended April 30, from RM60.8mil a year ago.

It said the lower loss was due to unrealised foreign exchange differences as a result of an appreciation in the exchange rate of the British pound in the current quarter.

EWI is targeting total sales RM2.5bil worth of properties for this year. For the first of FY17, EWI registered RM1.05bil, bringing its total cumulative sales from its existing four projects to RM6.73bil.

EWI president and CEO Datuk Teow Leong Seng attributed the group’s steady property sales to its balanced buyer profile and the attractiveness of its projects in the United Kingdom and Australia.

“We are very fortunate to have cultivated a strong following for all our projects with a good mix of customers comprising both international and home country buyers.

“This is a key advantage we will deploy going forward to achieve our ambition of becoming a significant global property player,” he said in a statement.