Ecoworld’s 1QFY24 results within expectations with strong new sales momentum
KUCHING: Eco World Development Group Bhd’s (Ecoworld) first quarter of financial year 2024 (1QFY24) results have come within expectations as the developer managed to achieve a core net income (CNI) of RM70.9 million.
According to the research arm of Midf Amanah Investment Bank Bhd (Midf Research), the results were deemed to be within expectations as it made up 25 per cent and 26 per cent of theirs and consensus’ full year estimates respectively.
For the period under review, the group’s revenue grew by 10.9 per cent year on year (y-o-y) to RM537.8 million thanks to steady sales while the CNI of RM70.9 million grew at a faster pace of 25.3 per cent due to higher recognition from its ongoing projects. The list of ongoing Ecoworld projects include: Eco Botanic, Eco Botanic 2, Eco Spring, Eco Tropics, Eco Business Park 1, Eco Business Park 2, Eco Business Park 3, Eco Majestic, Eco Forest and Eco Sanctuary.
On a sequential basis however, the group’s revenue and CNI saw respective contracts of 36.3 per cent and 19.9 per cent.
“The lower earnings on sequential basis were due to high base in 4QFY23 which was lifted by earnings recognition of land sale in Eco Business Park II,” the research arm explained.
They added that the CNI decline was also narrower thanks to a cushioning effect from lower marketing and administrative expenses.
New sales during the period were also highly encouraging as Ecoworld managed to register RM1.26 billion worth of new sales for the first four months of FY24 which made up 36 per cent of its management’s new sales target of RM3.5 billion.
“Projects at southern part of Malaysia contributed 57 per cent of new sales, projects at central region contributed to 30 per cent of new sales while the remaining 13 per cent of sales were contributed by projects at northern part of Malaysia,” the research arm reported.
They continued to see stable new sales outlook for the group, supported by both residential and industrial projects.