RM1.35b sales in first four months of FY23

PETALING JAYA: Eco World Development Group Bhd recorded RM1.35 billion sales in the first four months of financial year 2023, representing 38.5% of its target of RM3.5 billion for FY23.

President and CEO Datuk Chang Khim Wah said the impressive performance is due to the group’s highly diversified product range, which now includes sizeable industrial and commercial portfolios, on top of its large residential base.

“Our business park segment was off to an especially strong start following a strategic sale to the Haitian Group of 92 acres of industrial lands at EBP II in Iskandar Malaysia,” he said in a statement today.

He added that the presence of the Haitian group at its business park will have a highly catalytic effect to draw in other upstream and downstream businesses.

“Apart from accelerating development and value creation for the remaining lands at EBP II, large technologically advanced foreign direct investments such as that of the Haitian group are able to generate positive spillover benefits for the state and broader community through the creation of higher value jobs and increased business opportunities for locals,” said Chang.

In addition to the above, sales of cluster, semi-dee and service factories at EBP I & EBP III in Iskandar Malaysia and EBP V in the Klang Valley, as well as smaller plots of industrial lands for built-to-suit factories at EBP V, also contributed to the RM616 million achieved by the group’s industrial segment.

In addition, commercial products contributed RM182 million sales which is about 41% of the actual FY22 full-year sales from this segment.

Chang shared that its core residential business saw total sales of RM548 million in the first four months of FY23.

“We continued to see sustained interest in our upgrader products. Demand remained strong for our CoHomes, garden homes, cluster homes, terraces and semi-dees available at Eco Majestic, Eco Forest, Eco Sanctuary, Eco Ardence and Eco Grandeur in the Klang Valley, Eco Botanic 1 & 2, EcoSpring, Eco Tropics in Iskandar Malaysia and Eco Horizon in Penang. Bukit Bintang City Centre’s launch of the SWNK House serviced apartments and the continued sale of the Eden Condominium units at Eco Sanctuary added to the overall sales achieved,” he said.

Chang said the group will have many new launches lined up this year, which marks EcoWorld’s 10th anniversary.

Meanwhile, in a Bursa Malaysia filing, EcoWorld said its net profit for the first quarter ended Jan 31, 2023 (Q1’23) fell 10.04% to RM57 million compared with RM63.36 million in the corresponding quarter last year.

Revenue decreased 9.13% to RM484.73 million from RM533.42 million in the same quarter last year, mainly due to lower contributions in Q1’23 from several parcels which were substantially completed in FY22.

The group said revenue was affected by the earlier Chinese New Year celebrations in January 2023 which slowed down work progress. This is expected to normalise and pick up in the upcoming quarters.