Ecoworld Malaysia posts higher net profit of RM69.23 mln in 1Q

KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) posted a higher net profit of RM69.23 million in the first quarter of the financial year ended Jan 31, 2024 (1Q FY2024) from RM57.0 million in the same period a year ago.

Revenue increased 10.9 per cent to RM537.79 million from RM484.73 million previously due to higher contributions from active phases and newly launched phases.

“The main projects which contributed to revenue and gross profit in 1Q 2024 were Eco Botanic, Eco Botanic 2, Eco Spring, Eco Tropics, Eco Business Park I, Eco Business Park II and Eco Business Park III in Iskandar Malaysia and Eco Majestic, Eco Forest and Eco Sanctuary in the Klang Valley,” the real estate developer said in a Bursa Malaysia filing.

EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah said in a statement that the group recorded RM1.26 billion in sales in the first four months of FY2024, representing 36 per cent of its FY2024 sales target of RM3.5 billion.

Commenting on the group’s performance by revenue pillars, he said the sales of residential homes remain the biggest contributor, with their Eco Townships and Eco Rise pillars bringing in RM799 million or 63 per cent of total sales as of Feb 29, 2024.

“These include sales from new launches of landed homes at Eco Spring and Eco Tropics in Iskandar Malaysia and Eco Grandeur in the Klang Valley,” Chang said.

The company would also actively seek land-banking opportunities, given its low net gearing level of 0.28 as at Jan 31, 2024.

“EcoWorld Malaysia remains well-positioned to be able to increase our landbank to further boost our growth prospects when the right opportunity comes along,” he said.