EcoWorld nears RM3bil sales target

Despite the soft demand in the local property market, Eco World Development Group Bhd (EcoWorld) is confident it will meet its sales target of RM3bil for its current financial year ending Oct 31, 2015, driven by its brand profile and township development.

In a statement yesterday, EcoWorld said its immediate plan included the launch of Eco Meadows in Seberang Prai and Bukit Bintang City Centre (BBCC) in Kuala Lumpur, which would set up a solid foundation for its growth.

“We remain confident in meeting our sales target of RM3bil for the current financial year.

“To achieve this the group will continue to invest in innovative campaigns to further raise the EcoWorld brand profile and actively market our 10 ongoing projects,” said president and chief executive officer Datuk Chang Khim Wah (pic).

EcoWorld has chalked up RM2.37bil in sales as at Aug 31, with the bulk of it contributed from its projects in the Klang Valley and Iskandar Malaysia.

The property developer said about RM1.37bil sales were contributed by projects in Klang Valley and RM964mil from Iskandar Malaysia.

Chang said the strong result amid the current soft market conditions validated the group’s decision to focus on townships and green business parks, which remain the most resilient segments in the property market.

EcoWorld posted a net profit of RM9.39mil for its third quarter ended July 31 on the back of RM454.2mil revenue.

Earnings per share for its third quarter was 0.41 sen while net assets per share stood at RM1.33.

Its first nine-month earnings and revenue for FY15 were RM24.2mil and RM1.03bil.

The jump in EcoWorld’s revenue to above RM1bil was due to the completion of its corporate exercise to acquire the development rights of eight projects by Eco World Development Sdn Bhd.

The group’s ongoing projects, which contributed to its revenue are Eco Majestic, Eco Sky and Saujana Glenmarie in the Klang Valley and Eco Botanic, Eco Spring, Eco Summer and Eco Business Park 1 and Eco Tropics in Iskandar Malaysia.

Eco World Development Sdn Bhd took over the listing status of Focal Aims Bhd last year.

Prior to the takeover launch, Focal Aims owned a 1,000ha township in Kota Masai near Johor Baru, while Eco World had eight development projects in the Klang Valley, Penang and Iskandar Malaysia, Johor.

EcoWorld’s flagship township in the Klang Valley – Eco Majestic in Semenyih – has received 100% sales conversion from its recent launch of two-storey shopoffices in the second quarter.

The township had increased its connectivity with the opening of Exit 2102 off the Lekas Highway in August.

Chang said the township’s connectivity is set to improve further when the Eco Majestic Interchange, which offers direct access to the Lekas Highway via its south-western flank, was completed at the end of 2016.

“Including the original access from Jalan Semenyih, there will be three major entry points into the township, which bodes well for its future commercial vibrancy,” he said. - By The Star