EcoWorld records RM955 mil sales in 1QFY17, targets to launch three projects in 2H2017

EcoWorld

SEMENYIH (March 16): Eco World Development Group Bhd (EcoWorld) has achieved RM955 million sales in the first quarter of financial year 2017 (1QFY17) , 57% higher than the RM607.8 million recorded in the first four months of financial year 2016 (FY2016).

According to EcoWorld president and CEO Chang Khim Wah, RM797 million was contributed by projects in the Klang Valley while the remaining RM158 million came from projects in Iskandar Malaysia, Johor and Penang.

“The significantly higher sales numbers achieved this year is the result of the strong follow-through momentum from our mega launches in the final quarter of FY2016.

“We are delighted with the continued strong response to our latest projects — Eco Grandeur, Eco Ardence as well as BBCC (Bukit Bintang City Centre). These three developments are uniquely differentiated to cater to very separate target markets.

“Furthermore, they are located in three distinct property hotspots in the Klang Valley which enable us to reach out to and serve the needs of a wide and diversified pool of property purchasers,” Chang told reporters after EcoWorld’s annual general meeting (AGM) today.

Chang added that the strong sales performance in the first quarter was also boosted by the launch of Eco Sanctuary’s (in Selangor) final landed, gated-and-guarded precinct known as Grandezza followed by the opening of a new show village in February 2017.

Meanwhile, the developer is looking to launch three projects by the second half of 2017 (2H2017). Among them are Eco Horizon and Eco Sun in Batu Kawan, Penang, Eco Business Park V in Puncak Alam as well as Eco Forest in Selangor.

The 492.7-acre Eco Forest township is located about 5km from Eco Majestic and has a gross development value (GDV) of RM3.5 billion. The 374.6-acre Eco Sun and Eco Horizon have a combined GDV of RM7.762 billion while the 518-acre Eco Business Park V has a GDV of RM2.747 billion.

“Over the next few quarters, we expect interest and sales momentum in these three projects to pick up further,” added Chang.

Apart from that, EcoWorld is set to hand over about 4,700 units of properties by end-FY2017 (October 2017). In Iskandar Malaysia, Eco Botanic has handed over its first phase of semi-dees and is looking to hand over Eco Boulevard — the commercial segment — to further activate the township.

The developer said this will be followed by handovers of homes at Eco Spring, Eco Summer and Eco Tropics within the next one to two quarters. In the Klang Valley, Eco Sky has recently delivered its retail shopoffices to buyers last December while the first phase of Eco Majestic’s terraced homes will be handed over in April.

Up north in Penang, sales activities are expected to increase in 2H2017 with the launch of Eco Sun and Eco Horizon in Batu Kawan, the largest township development by EcoWorld in the northern region.

On the international front, Eco World International Bhd (EWI) recorded cumulative sales of RM6.488 billion for the first quarter ended Jan 31 based on exchange rates as at Jan 31 versus RM5.29 billion as at Oct 31, 2016. Profit after tax as at Jan 31 stood at RM116.2 million.  

“FY2017 is shaping up to be a very good year for the group. The Employees Provident Fund as a 40% shareholder to jointly develop another four projects — Eco Grandeur, Eco Business Park V, Eco Horizon and Eco Sun, the completion of our 25% private placement and the strong 1QFY17 profits will also strengthen our balance sheet and help us better manage our gearing position going forward.

“We are confident that we are on track to achieve our sales target of RM4 billion sales in Malaysia and once we complete our subscription for the 27% stake in EWI, we will be entitled to recognise a proportionate share of EWI’s sales for FY2017 which will add on to our pipeline of future earnings,” said Chang. 

from TheEdgeProperty.com http://www.theedgeproperty.com.my/content/1096127/ecoworld-records-rm955-mil-sales-1qfy17-targets-launch-three-projects-2h2017

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