EcoWorld Development Q3 net profit jumps 47.6%

PETALING JAYA: Eco World Development Group Bhd’s (EcoWorld Malaysia) net profit jumped 47.6% to RM38.5 million in the third quarter (Q3) ended July 31, from RM26.1 million in the previous corresponding quarter.
The higher profit attributed to revenue and profit recognition by all of the group’s joint venture projects, and lower selling and marketing as well as administrative expenses, the group said in a statement.
Revenue for the quarter declined 35.8% to RM490 million, compared with RM762.9 million in the same quarter a year ago, due to completion of major projects.
For the nine months period, its net profit decreased 44.8% to RM97 million, against RM175.9 million in the previous year, while revenue fell 23.4% to RM1.55 billion, from RM2.02 billion previously.
Meanwhile, Eco World International Bhd recorded a net profit of RM10.4 million in the third quarter ended July 31, from a net loss of RM24.2 million a year ago, mainly due to revenue and profit recognition from its joint venture project in the UK.
Going forward, EcoWorld Malaysia chairman Tan Sri Liew Kee Sin said the prospects for both EcoWorld Malaysia and EcoWorld International remain very bright.
As at Aug 31, Liew said EcoWorld Malaysia’s and EcoWorld International’s effective share of unbilled progress billings stood at RM6.16 billion and RM6 billion, respectively.
“Our large number of ongoing projects, the increasing maturity of our Malaysian landbank coupled with the growing pipeline of new projects secured by EcoWorld International also provides us a strong foundation on which to anchor our growth ambitions.
“In this regard, the EcoWorld brand’s remaining gross domestic value (GDV) to be developed amounts to approximately RM86.5 billion on a combined basis – this will assure the sustainability of the group’s local and international business model for many years to come,” Liew added.
EcoWorld Malaysia’s share price remained unchanged at RM1.18 today, while EcoWorld International’s shares gained 3 sen or 2.8% to RM1.10.