EcoWorld's 3Q net profit comes in at RM9.4 mil

KUALA LUMPUR (Sept 17): Eco World Development Group Bhd (EcoWorld) has posted a net profit of RM9.39 million or 0.41 sen per share in its third financial quarter ended July 31, 2015 (3QFY15) on the back of RM454.28 million revenue.

As EcoWorld has changed its financial year end from Sept 30 to Oct 31, there are no comparative figures from a year earlier.

For the nine-month period (9MFY15), the group posted a net profit of RM24.26 million or 1.70 sen per share, with a revenue of RM1.03 billion revenue.

According to a filing with Bursa today, EcoWorld said the group's revenue and gross profit continued to grow at a steady rate since its acquisition of the development rights to eight projects pursuant to the corporate exercise announced on April 25, 2014 became unconditional on Jan 8, 2015.

"This has enabled the group to record a revenue of RM1.03 billion and gross profit of RM243.2 million with gross margins averaging 24% for the current period-to-date," it noted, stating that ongoing projects which contributed to the revenue and gross profit achieved include Eco Majestic, Eco Sky and Saujana Glenmarie in the Klang Valley, as well as Eco Botanic, Eco Spring, Eco Summer, Eco Business Park 1 and EcoTropics in Iskandar Malaysia, Johor.

Its profit before tax (PBT) came in at RM39 million in the current period-to-date, adding that PBT grew at a slower rate largely due to the selling, marketing and administrative expenses incurred in relation to the four-project mega launch on June 13, 2015 and the establishment of new sales galleries in the Klang Valley (Eco Sanctuary), Penang (Eco Terraces), Iskandar Malaysia (EcoTropics and Eco Business Park III) and Singapore.

EcoWorld said it achieved RM1.02 billion sales in the third quarter of FY2015, RM673 million came from projects in the Klang Valley and RM311 million was contributed by projects in Iskandar Malaysia.

As at Aug 31, 2015, year-to-date group sales stood at RM2.37 billion, with RM1.36 billion contributed by projects in the Klang Valley and RM964 million coming from Iskandar Malaysia, it said.

On prospects, EcoWorld said the remaining months of FY2015 will be challenging.

Nevertheless, its board is confident of achieving its sales target of RM3 billion for the current financial year as there will still be demand for good quality products in the right location, it added.

"To achieve this, the group will continue to invest in innovative campaigns to further raise EcoWorld's brand profile and actively promote its 10 ongoing projects.

"Plans are also being finalised for the launch of several other upcoming projects which includes EcoMeadows on the Penang mainland and BBCC at the heart of Bukit Bintang in Kuala Lumpur to establish a solid foundation for future growth," it noted.

As at 3.53pm, EcoWorld was trading unchanged at RM1.45, for a market capitalisation of RM3.43 billion.