Eco World Development Group Bhd, a leading property developer, has announced impressive financial results for the second quarter ended April 30, 2023. The company's net profit soared by 37.3% to RM62.69 million, compared to RM45.67 million during the same period last year. This substantial growth in profit can be attributed to cost savings achieved upon the completion of certain phases.
Although Eco World experienced a slight dip in revenue, which decreased to RM420.82 million from RM506.9 million, the company remains optimistic. Earnings per share (EPS) rose from 1.55 sen to 2.13 sen, indicating positive performance. Key revenue contributors for the quarter were Eco Majestic, Eco Forest, Eco Sanctuary, Eco Botanic, Eco Botanic 2, Eco Spring, Eco Business Park I and II, Eco Tropics, Eco Business Park III, and Eco Terraces.
In the first half of the fiscal year (1HFY23), EcoWorld recorded a higher net profit of RM119.7 million, surpassing last year's RM109.04 million. However, revenue declined to RM905.56 million from RM1.04 billion. The company achieved strong sales, totaling RM2.4 billion in the first seven months of FY23, representing 68.5% of its sales target for the year.
Demand for EcoWorld's Eco Business Parks (EBP) remains robust, with year-to-date sales reaching RM838 million, surpassing the full-year EBP sales of RM753 million in FY22. The company's solid sales performance has contributed to increased future revenue, which stands at RM4.29 billion as of May 31, 2023, ensuring clear earnings and cash flow visibility.
Considering its impressive performance, EcoWorld's board of directors has declared a two sen interim dividend payable on July 20, 2023. Looking ahead, EcoWorld Malaysia's president and CEO, Datuk Chang Khim Wah, announced plans to launch a series of "duduk" apartments, catering to first-time homeowners and those seeking affordable housing options. The company's recent launch of Hana D' Eco Ardence received a positive response, with 245 units sold within two months. Future launches are expected in the Klang Valley, Iskandar Malaysia, and Penang.