EcoWorld reports marginal increase in 1Q net profit to RM63.4m

KUALA LUMPUR (March 17): Eco World Development Group Bhd's (EcoWorld) net profit in the first quarter ended Jan 31, 2022 (1QFY22) rose marginally by 1.49% year-on-year to RM63.36 million from RM62.43 million on the back of RM1.28 billion in sales. 

Earnings per share inched up to 2.15 sen from 2.12 sen previously. 

In a Bursa Malaysia filing on Thursday (March 17), the property developer’s quarterly revenue ticked higher by 5.14% to RM533.42 million from RM507.35 million, arising from cost savings on completed and near completion phases. 

On a quarterly basis, the group’s net profit rose 47.92% from RM42.84 million reported in the immediate preceding quarter (4QFY21) while revenue fell by 19.91% from RM666.05 million. 

Commenting on the group’s financial performance, EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said sales in all three geographic regions grew strongly as compared to the same time last year with the highest percentage of increases recorded by its projects in Iskandar Malaysia (up by 194%) followed by Penang (up by 110%).

“Our Klang Valley projects also did very well with RM709 million achieved — this represents 56% of total group sales up to Feb 28, 2022. 

“We are especially pleased with the very strong sales boost received from good take-ups of new phases launched. 

“Over the last two years we had been working hard to expand our product mix and customer base with a focus on attracting new homebuyers and young families that form the bedrock for the long-term growth of vibrant townships,” he said. 

Chang added the cessation of the government’s Home Ownership Campaign (HOC) on Dec 31, 2021 did not have any noticeable impact on its sales momentum which continued to be sustained throughout January to February 2022.

“We have always had a strong following of purchasers looking for upgrader and luxury homes. 

“Our launches over the last few months are geared towards serving the needs of this more aspirational market and we are delighted with the response received to date,” he elaborated. 

At noon break, shares in EcoWorld were one sen or 1.07% higher to 94.5 sen, giving it a market capitalisation of RM2.78 billion. 

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