EcoWorld Malaysia exceeds target with RM3.61bil sales in FY23

KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) achieved sales of RM3.61bil in FY23, which exceeded its sales target of RM3.5bil.

According to the group, its Eco Business Parks registered RM1.04bil in industrial sales, which was the highest in a single year.

The group’s Eco Hubs, meanwhile, contributed RM515mil in commercial properties sales in FY23, representing a 15% increase over FY22.

Total residential sales in FY23 hit RM2.05bil on the back of the group’s Eco Townships and Eco Rise.

“This year, EcoWorld recorded RM1.47bil from sales of homes within its Eco Townships that were priced above RM650,000 and RM577mil from homes priced below RM650,000, mainly from the group’s duduk series of apartments,” it said in a statement.

In the fourth quarter ended Oct 31, 2023, EcoWorld Malaysia’s net profit came to RM3.29mil, which was nearly double RM1.78mil recorded in the same quarter in 2022, representing an earnings per share of 0.11 sen against 0.06 sen.

The group reported revenue of RM844.46mil in 4QFY23, up from RM559.28mil in 4QFY22.

Over the full financial year, the group posted a net profit of RM189.32mil, as compared to RM157.21mil in FY22, while revenue was RM2.23bil against RM2.04bil in the previous year.

Based on the performance, the board of directors declared a final dividend of two sen per share, which brings the total dividend payout for FY23 to six sen per share.

In FY24, EcoWorld Malaysia said there will be a potential receipt of more dividends from its subsidiary, Eco World International Bhd, as the latter aims to sell out all its remaining stocks in FY24 and distribute the excess cash generated to shareholders.

“This will add to EcoWorld Malaysia’s cash reserves and strengthen the group’s capabilities to acquire new land bank,” it said.

Commenting on prospects, EcoWorld Malaysia president and CEO Datuk Chang Khim Wah said the group has entered a highly cash-generative cycle of each project’s lifecycle.

It said future revenue as at oct 31, 2023, remained healthy at RM3.49bil, providing clear earnings and cash flow visibility in the near- and mid-term.

Chang added that the group will be maintaining its sales target at RM3.5bil for its Malaysian operations as it focuses on sustainable growth by improving absolute returns from its landbank.

“Further, in view of the group’s healthy cash position and strong balance sheet, EcoWorld Malaysia is actively seeking to acquire more landbank to extend the breadth and depth of its product offerings under each of its four revenue pillars, with a view towards increasing its future pipelines of growth,” he said.