Chang: ‘This overwhelming response is the best vote of confidence we can get.’
PETALING JAYA: Property developer Eco World Development Group Bhd’s net profit for the third quarter ended July 31 soared 375% to RM44.58mil compared with the corresponding quarter a year ago on contributions from ongoing projects.
Revenue for the quarter under review jumped 60.10% to RM727.33mil.
For the cumulative nine-month period, the company posted a net profit of RM99.93mil on revenue of RM1.81bil.
Ongoing projects contributing to the company’s earnings included Eco Majestic, Eco Sanctuary and Eco Sky in the Klang Valley; Eco Botanic, Eco Spring, Eco Summer and Eco Business Park 1, Eco Tropics and Eco Business Park III in Iskandar Malaysia; as well as Eco Meadows and Eco Terraces in Penang.
The company’s unbilled progress billings stood in excess of RM4bil as of July 31, which will continue to sustain it’s revenue and earnings momentum going forward.
As of Aug 31, 2016, the company had achieved sales amounting to RM2.20bil for the financial year ending Oct 31, 2016 (FY16).
The sales achieved to date came from Eco World’s projects in the Klang Valley, which saw a contribution of RM1.19bil, Iskandar Malaysia which contributed RM935mil while the remaining RM73mil came from Penang.
“We expect to see sales pick up strongly in the fourth quarter following the concurrent launch of four projects on Sept 25 under the EcoWorld’s Firsts campaign,” said Eco World president and chief executive officer Datuk Chang Khim Wah.
The projects launched, namely Eco Grandeur and Eco Ardence in the Klang Valley, Eco Bloom @ Eco Meadows in Penang and Eco Business Park II in Iskandar Malaysia, featured several firsts for the company in terms of master planning concepts and product design.
The cumulative value of products launched as part of the campaign was RM1bil.
Indicative overall take-up achieved based on total units made available for sale was 81%, with more than 1,000 units snapped up on launch date across the four projects.
“We are truly grateful and very humbled by the phenomenal support from our customers who turned up en masse last Sunday to purchase their dream home.
“Many came with their families and started queueing up well before 8am to select their units.
“This overwhelming response is the best vote of confidence we can get. The purchasers believe in the EcoWorld brand and our ability to create enduring value for them through innovation, creativity and continuous improvement,” said Chang.
Chang added that the Bukit Bintang City Centre (BBCC)’s strata offices and serviced apartments would be launched before the financial year-end.
On the international front, discussions between Eco World, Tan Sri Liew Kee Sin, and a property development group to co-anchor Eco World International Bhd (EWI)’s proposed initial public offering (IPO) as strategic investors would be concluded soon.
Thereafter, Eco World will proceed to seek the approval of shareholders for the proposed subscription for up to 30% of EWI’s enlarged share capital pursuant to the proposed IPO.
Chang said the company remained on track to achieve FY16 sales target of RM4bil based on the high level of locked-in sales achieved up to Aug 31.
There were also contributions from the company’s 11 ongoing projects, overwhelming response for the launch of the four new projects under the EcoWorld’s Firsts Campaign as well as the upcoming launch of BBCC by year-end.