KUALA LUMPUR (September 17): Eco World Development Group Bhd’s net profit for the third quarter ended July 31, 2021 (3QFY21) edged down 1.9% to RM35.15million from RM35.83million de RM at the same time a year ago.
Revenue for the quarter fell 6.06% to RM 448.91 million from RM 477.87 million in the same quarter last year, mainly due to the sale of more or near-completed properties , which allowed a higher percentage of revenue to be immediately recognized upon completion of sales of the units.
However, for the cumulative nine-month period, Eco World’s net profit increased 59.19% to RM 139.9 million from RM 87.88 million in the same period a year earlier, while that cumulative revenue increased 1.14% to RM 1.38 billion, from RM 1. 0.36 billion previously.
With this, Eco World recorded RM2.873 billion in sales for 9MFY21 and as of August 31, 2021, it had reached RM3.11 billion. The group has also seen its sales increase by more than RM 1 billion since 2TFY21, allowing it to exceed the annual target for fiscal year 2021 of RM 2.875 billion.
He added that total sales in FY10MFY21 were 35% higher than RM2.3 billion in FY2020.
In an exchange filing today, Eco World noted that the main projects that contributed to revenue and gross margin in fiscal year 3QFY21 were Eco Majestic, Eco Forest and Eco Sanctuary in Klang Valley; Eco Botanic, Eco Botanic 2, Eco Spring, Eco Summer, Eco Business Park II, Eco Tropics and Eco Business Park III in Iskandar, Malaysia; as well as ecological terraces in Penang.
He added that the group’s share in the results of its Malaysian joint ventures came from Eco Grandeur, Eco Business Park V, Eco Horizon, Eco Ardence and Bukit Bintang City Center (BBCC), whose contributions totals were 30.3% lower in 3TFY21 compared to the quarter last year, as progress on construction sites slowed due to restrictions placed on site activities during MCO 3.0 and FMCO, coupled upon completion of the development of phase 1 of Eco Horizon.
“Despite the implementation of MCO 3.0 followed by OCAF during our 3Q 2021, we are very pleased to report that the group has exceeded our sales target for fiscal 2021 in 10 months. Sales remained strong in all three geographies, as well as in all market segments. , which indicate the strength of fundamental demand for our projects and products, ”said Eco World President and CEO Datuk Chang Khim Wah.
“Now that 100% of our staff medically eligible for vaccination and over 80% of site workers are fully vaccinated, all construction sites at EcoWorld Malaysia are able to operate at full capacity, which will allow us to catch up. the delay in the work. ,” he added.
The group has also been authorized to reopen its sales galleries, and is therefore able to welcome customers again to visit them to personally see their projects and properties, which remains an important step in the buying process. for many.
This, Chang said, will allow the group to continue its plans to launch several new phases before the end of the year, in order to build a strong sales pipeline for the coming year.
Eco World’s share price closed unchanged at 80.5 sen today, giving it a market cap of RM2.36 billion. Since the start of the year, the stock has risen 67.71%.