KUALA LUMPUR: Eco World Development Group Bhd 's (EcoWorld Malaysia) sales in the first four months of its financial year jumped 40% year-on-year (y-o-y) to RM1.28bil, with strong sales growth recorded across its geographic regions.
The robust sales underpinned an improved earnings performance for the group, which posted a net profit of RM63.36mil in 1QFY22, up 1.5% y-o-y, on the back of revenue of RM533.42mil, which was 5.1% improved from 1QFY21.
For the first four months of FY22, The property group said sales in Iskandar Malaysia and Penang rose 194% and 110% respectively while the group achieved RM709mil in sales in the Klang Valley, which represents 56% of its total group sales up to Feb 28, 2022.
It said its share of future revenue as at Feb 28, 2022, increased to RM3.88bil following the strong uptake across the regions.
“The healthy uptick in sales by the Group’s industrial projects in both Iskandar Malaysia and the Klang Valley is an encouraging sign of broad-based economic recovery.
"The Malaysian Investment Development Authority (MIDA)’s recent report of the 113.7% investment growth recorded in 2021 by the manufacturing sector also point to better days ahead, and we expect that demand for industrial products will further increase once Malaysia fully reopens its borders on 1 April 2022,” said EcoWorld Malaysia president and CEO Datuk Chang Khim Wah in a statement.
He also noted that net gearing decreased from 0.44 times as at Oct 31, 2021, to 0.4 times as at Jan 31, 2022, which will give the group ample space to consider landbank expansion should the opportunity arise.
On the success of recent launches, Chang said new properties in Eco Majestic, Eco Grandeur and Eco Horizon contributed to the strong sales performance as they cater for the needs of the more aspirational market, citing the group's strong following of purchasers looking for upgrader and luxury homes.
Meanwhile, inventory levels of the group's completed units were further reduced from RM609mil in Oct 31, 2021, to RM506mil in Jan 31, 2022.
Given the sales progress to-date, Chang is optimistic the group will achieve its FY22 sales target of RM2.5bil, notwithstanding market challenges such as inflation caused by rising material and oil prices and potential interest rate hikes.