Eco World sales rebound
Re-opening of galleries sees pent-up demand
PETALING JAYA: Eco World Development Group Bhd has recorded a net profit of Rm21.39mil in its second quarter ended April 30 compared with Rm41.17mil in the previous corresponding period, with sales having rebounded strongly since the re-opening of its sales galleries on May 4, 2020.
Revenue in the second quarter, meanwhile, stood at Rm345.40mil from Rm543.18mil a year earlier.
In a statement yesterday, the property developer said the second quarter was a quiet period due to the implementation of the government’s movement control order (MCO) from March 18 to May 3, 2020.
However, the group experienced a significant rebound in sales and bookings which have exceeded Rm1bil since the start of the conditional MCO on May 4, 2020.
“As at June 15, 2020, Eco World’s sales for 2020 have reached Rm975mil. This has enabled future revenue position to remain high at Rm4.6bil. In addition, the group has a further booking pipeline of approximately Rm600mil, which it is working to convert into secured sales over the next few months.”
For the six-month period ended April 30, 2020, net profit stood at Rm54.91mil compared with Rm71.49mil in the previous corresponding period, while revenue came in at Rm883.35mil compared with Rm1.03bil a year earlier.
On its prospects, Eco World president and chief executive officer Datuk Chang Khim Wah said the strong momentum since the start of the conditional MCO will be sustained.
“The announcement of the Penjana incentives for the property sector on June 5, 2020 including the re-introduction of the Home Ownership Campaign definitely contributed towards the strong uptick in interest.”
Despite the many challenges experienced by the sector and economy, Chang said the company was pleased to note that buying interest remains strong.
“If anything, after being stuck at home for almost two months during the MCO, many have come to realise how important it is to have a good home.
“This has led to a greater appreciation of Eco World projects that offer well-designed homes within secured environments with comprehensive amenities and services within a 10-km radius that can meet the lifestyle needs of every generation in the post-covid 19 new normal.”
Meanwhile, Eco World International Bhd (EWI) reported a net profit of Rm20.06mil for its second quarter ended April 30 compared with a net loss of Rm11.98mil in the previous corresponding period. Revenue in the second quarter stood at RM113,000.
For the six-month period ended April 30, 2020, net profit stood at Rm25.25mil compared with Rm10.78mil in the previous corresponding period. Revenue for the period stood at RM164,000.
In a statement, EWI said sales improved in the second quarter of 2020 despite various Covid-19 measures imposed in both the United Kingdom and Australia.
“Sales momentum gained further strength in the first six weeks of the third quarter of 2020, bringing total year-to-date sales as at June 15, 2020 to Rm808mil.”
EWI president and chief executive officer Datuk Teow Leong Seng said the company has been experiencing increased institutional interest for its build-to-rent properties in the UK.
“We have received interest from institutions from the United States, Canada, Europe, the Middle East and Asia, which we have narrowed down to 15 to 20 prospects,” he said.