PETALING JAYA: Eco World Development Group Bhd reported a net profit of RM50.48 million for its third quarter ended July 31, 2019, an 81.6% jump from RM27.80 million recorded in the same period of the previous year, on the back of a higher proportion of completed/near completion units sold and a higher percentage of completion.
For the period, the group’s revenue came in at RM521.37 million, a 14.7% increase from RM454.65 million previously.
EcoWorld’s nine-month net profit surged 51.1% to RM121.97 million against RM80.69 million recorded in the same period of the previous year, while revenue grew 2.1% to RM1.56 billion from RM1.52 billion.
According to the group’s filing with the stock exchange, the contribution from its Malaysian joint venture increased 39% for the quarter due to greater work progress achieved by Eco Grandeur, Eco Business Park V, Eco Horizon, Eco Ardence and Bukit Bintang City Centre.
EcoWorld Malaysia’s president and CEO, Datuk Chang Khim Wah noted that the profits recorded for the quarter is the highest it has achieved since the group started.
“We are also happy to note that the positive momentum established after the official launch of the National Home Ownership Campaign (NHOC) on March 1, 2019 has continued for EcoWorld.”
For the remainder of the year, it will be launching a number of new properties in various township developments in the fourth quarter of the year, which will help the group achieve its two-year target of RM6 billion sales for FY19 and FY20.
On the other hand its associate company, Eco World International Bhd’s net profit leaped more than four times to RM57.94 million for the third quarter ended July 31, 2019 from RM12.85 million in the same quarter a year ago, attributed to higher revenue and profit in its joint venture project in the UK.
The group explained that this follows the completion and commencement of handover of units sold to customers, commencement of revenue and profit recognition of EcoWorld London’s built-to-rent sales and unrealised foreign exchange gain reported in current quarter.
“FY2019 and FY2020 will therefore be very strong years for Eco World International as the bulk of our RM5.8 billion future revenue as at Aug 31, 2019 are translated into revenue and share of profits from joint ventures – this provides our shareholders with very good near-term earnings visibility,” said the group president and CEO Datuk Teow Leong Seng.
For the nine-month period, the group registered a net profit of RM68.71 million against a net loss of RM23.78 reported for the same period of last year.
