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Eco World's net profit improved to RM63.36 million in Q1


High rise property price appreciation in Taman Desa
©Andrii Yalanskyi /123rf

KUALA LUMPUR, March 17 — Eco World Development Group Bhd’s (EcoWorld Malaysia) net profit for the first quarter (Q1) ended Jan 31, 2022 improved slightly to RM63.36 million compared to RM62.43 million in the same quarter last year.

Revenue rose to RM533.42 million from RM507.35 million previously due to higher sales and realisation on completed and near completion phases, a Bursa Malaysia filing said today.

EcoWorld Malaysia president and chief executive officer Datuk Chang Khim Wah said the company’s performance in the first four months of the financial year 2022 (FY2022) was encouraging.

“Sales in all three geographical regions grew strongly compared to the same time last year with the highest percentage of increases recorded by our projects in Iskandar Malaysia (up by 194 per cent) followed by Penang (up by 110 per cent).

“Our Klang Valley projects also did very well with (sales of) RM709 million; this represents 56 per cent of total group sales up to Feb 28, 2022,” he said.

Chang said despite a very good start for FY2022, there are still market challenges to be overcome, including inflation caused by rising material, oil prices and the potential interest rate hikes.

Meanwhile, the group said Eco World International Bhd’s (EcoWorld International) sales and reservations for the four months up to Feb 28, 2022 stood at RM1.077 billion.

“EcoWorld Malaysia recorded a RM1.6 million loss as its share of results from EcoWorld International in Q1 2022, versus a profit of RM21.8 million in Q1 2021 due to fewer units sold handed over to customers in the United Kingdom and Australia in the current quarter,” it said.

The group noted that the cessation of the government’s Home Ownership Campaign on Dec 31, 2021 did not have any noticeable impact on its sales momentum which continued to be sustained throughout January to February 2022.

Based on the sales progress to date, EcoWorld Malaysia is optimistic that it is on track to achieve its FY2022 sales target of RM3.5 billion.

“The group’s focus on enhancing value and improving profitability by introducing products with higher margins is also progressing well, as demonstrated by the positive response to its latest launches of higher-end residential products,” it said.



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