PETALING JAYA: Eco World International Bhd is expected to achieve its property sales target of RM2bil for the financial year ending Oct 31, 2022 (FY22), given the group’s accelerated cash recoupment via the sales of its completed units.

       The group saw an increase in its new property sales in the first quarter (Q1) of FY22 to RM428mil from RM312mil in the previous corresponding quarter.

       This translates into 21% of its new property sales target of RM2bil for FY22 already achieved, mainly driven by the London City Island and Embassy Gardens projects, according to CGS-CIMB Research.

       “The group handed over 28 units of the Embassy Gardens Block A03 in Q1, with the bulk of handovers likely to take place in Q2 or Q3,” the brokerage said in its report.

       Eco World International recorded a net loss of RM14.7mil for Q1 compared with a net profit of RM55mil in the previous corresponding quarter, mainly attributed to fewer handovers of properties in Australia and the United Kingdom.

       The group posted RM685mil of new sales and RM393mil of pipeline reservation that amounted to RM1.08bil total sales including reserves in the first four months of FY22.

       “Demand in Australia has also been recovering steadily which contributed to the RM685mil sales secured in the first four months of this financial year,” said Eco World International president and chief executive officer Datuk Teow Leong Seng in a statement.

       The group will likely launch new projects at Woking and Oxbow worth up to ￡470mil (RM2.59bil) gross development value (GDV) in FY22, while launches at Kew bridge, with an estimated GDV of ￡240mil (RM1.32bil), could be delayed to FY23.

       Therefore, CGS-CIMB Research has forecast a weaker earnings outlook from FY22 to FY24 due to fewer project handovers amid the low number of projects in the pipeline. At the same time, new launches will only be contributing meaningfully from FY25.