KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) posted a higher net profit of RM70.05 million in the second quarter ended 30 April 2024 (2Q24) from RM62.69 million in the same quarter last year.
Revenue rose 32.1% to RM555.76 million from RM420.82 million due to higher contributions from active and newly launched phases of its property projects.
EcoWorld Malaysia noted that Eco Botanic, Eco Spring, Eco Tropics, Eco Business Park I and Eco Sanctuary in the Klang Valley were among the projects that contributed to revenue and gross profit in 2Q24.
Its President and Chief Executive Officer Datuk Chang Kim Wah said the group achieved RM2.18 billion in sales in 7 months of the 2024 financial year (FY), fuelled by robust demand for its projects in Iskandar Malaysia which contributed 61% of the group’s total year-to-date sales.
“From a segmental perspective, all four of the group’s revenue pillars, including Eco Townships, Eco Rise, Eco Hubs and Eco Business Parks performed strongly.
“Sales of residential homes under our Eco Townships pillar remain the largest segment with RM855 million recorded, of which 90% comprised upgrader homes priced above RM650,000,” he said.
Chang also noted that as its projects mature, backed by consistently strong sales, its ability to generate cash grows.
“In the first half of FY2024, the group generated RM470 million cash from operating activities, more than 3 times our net profit for the same period.
“As a result, our cash balance including deposits and short-term funds rose to RM1.44 billion – its highest level to date – reducing our net gearing ratio to 0.24 times,” he added.
According to EcoWorld, it is well-placed to acquire more land and is seeking, particularly under its Eco Townships, Eco Business Parks and Eco Rise pillars. It also aims to broaden its market share under every property market segment and to sustain growth.
— BERNAMA
