EcoWorld Malaysia 3Q2024 profit after tax up 21.3%, second interim dividend of two sen declared

• EcoWorld also surpassed its FY2024 sales target of RM3.5 billion in 10 months of FY2024.

KUALA LUMPUR (Sept 19): EcoWorld Malaysia recorded profit after tax (PAT) for 3Q2024 of RM80.4 million, 21.3% higher than 3Q2023 and 14.8% higher than 2Q 2024, according to a media release by the group today.

3Q YTD 2024 PAT stood at RM220.1 million, an increase of 18.3% compared to 3Q YTD 2023.

Revenue and gross profit for 3Q 2024 increased by 10.4% and 27.1%, respectively, compared to 3Q 2023, while gross profit margin improved from 27.2% in 3Q2023 to 31.3% in 3Q2024.

As at Aug 31, 2024 EcoWorld’s future revenue increased to RM4.49 billion, providing both near and mid-term future earnings and cashflow visibility to the group.

As at July 31, 2024, net cash flows generated from operating activities amounted to RM657.6 million, 55.2% higher than the RM423.7 million generated in the prior year corresponding period.

As for the group’s net gearing ratio as at July 31, 2024, it further reduced to 0.21 times, from 0.24 times in 2Q2024, with cash balances (including deposits and short-term funds) reaching a record high of RM1.55 billion.

EcoWorld also surpassed its FY2024 sales target of RM3.5 billion in 10 months of FY2024.

“Premised on the above results, the Board of Directors declared a second interim dividend of two sen per share in 3Q 2024 which is payable in October 2024. Total dividends declared to-date for FY2024 amount to four sen per share,” stated EcoWorld.

“From a regional perspective, Iskandar Malaysia was the largest contributor, accounting for 63% of the group’s total YTD sales, followed by 27% from the Klang Valley and 10% from Penang.

“The group’s industrial segment continues to power ahead, with RM1.05 billion sales achieved as at Aug 31, 2024, exceeding the full year record of RM1.04 billion achieved in FY2023. Recognising the huge potential for growth in this market, we launched our fifth revenue pillar, QUANTUM, on Aug 1, 2024 to focus on industrialists and service providers in the digital and high-technology space,” said EcoWorld Malaysia president & CEO, Datuk Chang Khim Wah. (pictured)

“We are confident that the group, through our sizeable, diversified yet complementary Eco Business Parks and QUANTUM pillars, will be able to meet the heightened industrial demand as we are able to cater to both traditional industrialists as well as technopreneurs and new economy players. Our close engagements over the last six months with global technology leaders effectively fast-tracked our evolution as an industrial developer” added Chang.

“On the residential front, the group’s Eco Townships and Eco Rise pillars recorded a combined total of RM2.0 billion sales up to Aug 31, 2024. Upgrader homes priced above RM650,000 made up 83% of Eco Township sales, demonstrating the strong fundamental demand for our higher-end landed products,” he said.

“Our commercial products under Eco Hubs brought in RM454 million sales to-date, with contributions from newly launched strata shops and shop offices in the Klang Valley and Penang,” he added.

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