Eco World sets RM4 billion sales target for FY17

Eco World Development Group Bhd ( Eco World) has set an ambitious target of RM4 billion of property sales in financial year 2017 (FY17) ending October 2017.

Following a company briefing, AllianceDBS Research Sdn Bhd (AllianceDBS Research) believed the property developer is able to meet its sales target in FY17 given the overwhelming response for the group’s launches in FY15-FY16.

The research firm in a report yesterday said the group’s property sales in FY17 will be supported by 15 on-going projects and two new projects to be launched in FY17 namely Eco Forest at Semenyih, Selangor and Eco Horizon at Batu Kawan, Penang.

AllianceDBS Research opined that Eco World continued to bank on the group’s internal marketing and sales team to generate more sales riding on the group’s strong brand name and track record in property development.

Besides that, the research firm believed the company’s innovative township products will remain well-received in the market as the property developer’s townships continued to gain traction with more deliveries completed.

It gathered that there would be more than 4,700 units to be completed in FY17 which could help generate more interest from potential buyers

Besides, the research firm also opined that the company’s focus on township projects with gated-and-guarded strata-titled homes will offer healthy and sustainable long-term demand as the township project matures.

It added the property developer’s eco- friendly amenities and impressive landscaping features commonly found in the group’s townships will continue to attract overwhelming response for the properties.

In the meantime, AllianceDBS Research observed that Eco World has achieved RM3.8 billion of gross property sales in FY16, including sales from joint ventures or associate interest.

The research firm noted the amount was derived from the group’s Malaysian operation alone where 15 out of the 18 projects have been launched.

As compared with Eco World’s sales of RM3 billion in FY15, AllianceDBS Research said the property developer’s sales in FY16 grew by 26 per cent which was an impressive results given the weak sentiment for the property market.

As at end of October 2016, Eco World had RM4.9 billion in unbilled sales which will support the group’s earnings for the next three years.

Once the company’s projects go into full swing over the next few years, the townships can turn into self-sustaining developments which will generate even stronger interest among property buyers.