KUALA LUMPUR: Eco World Development Group Bhd’s (EcoWorld Malaysia) net profit increased to RM45.67 million in the second quarter ended April 30, 2022 (Q2’22), from RM42.32 million in Q2’21.
In a filing with Bursa Malaysia today, the property developer attributed the higher earnings to higher sales and percentage of project completion achieved, as well as the realisation of cost-savings of several completed and nearly-completed phases.
Revenue for the quarter appreciated to RM506.89 million from RM420.46 million previously.
In light of its positive performance, the company has declared an interim dividend of two sen. EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said the property developer continued to experience steady sales in Q2’22 with RM2.17 billion achieved in seven months, placing the group well on track to achieve its full-year sales target of RM3.5 billion.
“The largest percentage increase in sales since our last reporting period came from our Iskandar Malaysia projects.
“Sales almost doubled to RM617 million as of May 31, 2022, from RM315 million as of Feb 28, 2022,” he said in a separate statement.
Chang noted that the opening of the international borders – particularly between Malaysia and Singapore – helped to increase demand in Iskandar Malaysia, boosting the group’s business park sales.
“As of May 31, 2022, total sales by the group’s four business parks stood at RM447 million, which is 93% of the full-year sales achieved by this segment in the previous financial year,” said Chang.
He added that EcoWorld Malaysia is also on the lookout for a good landbank to take advantage of its low net gearing of only 0.36 times as of April 30, 2022, to enable the group to further extend the development life of its current portfolio of matured projects.
As of April 30, 2022, EcoWorld Malaysia’s cash and bank balances increased to RM904.4 million, while its net borrowings reduced to RM1.7 billion. - Bernama
