SHAH ALAM: Eco World Development Group Berhad [EWB] announced today that the Group achieved RM410.7 million sales during the first quarter of FY2016 ending 31 October.
As at 29 February 2016, year-to-date Group sales amounted to RM607.8 million. RM344.6 million came from projects in the Klang Valley, RM233.1 million came from projects in Iskandar Malaysia and the remaining RM30.1 million was contributed by projects in Penang.
During the three months ended 31 January 2016, the Group recorded revenue of RM463.5 million and gross profit of RM109.7 million with gross margins averaging 24%. The Group recorded Profit before tax ("PBT") of RM31.2 million in the current financial period.
Ongoing projects which contributed to the revenue and gross profit achieved includeÂ Eco Majestic and Eco Sky in the Klang Valley, Eco Botanic, Eco Spring, Eco Summer and Eco Business Park I, Eco Tropics and Eco Business Park III in Iskandar Malaysia and Eco Terraces in Penang Island.
President & CEO Dato' Chang Khim Wah said the sustained sales momentum is an encouraging sign that the Group's projects continue to be sought-after by customers. Moving forward, Chang shared that the Group's sales in FY2016 will be underpinned by the launch of new phases and introduction of new products within its on-going projects.
In the Klang Valley, the Group's flagship township of Eco Majestic in Semenyih recently launched a small parcel of terraced houses in its Limited Editions series called Mellowood. Inspired by the black & white houses of the Straits era, these generously proportioned terraces have been embraced by upgraders thus setting a new price benchmark for landed properties in this up and coming township.
Eco Majestic has flourished into a much sought after township with the opening of a new link road from the Semenyih Toll (Exit 2102) that has shortened travelling time considerably for those coming to Eco Majestic, avoiding much of the heavy traffic on Jalan Semenyih.
In February, the township introduced its affordable apartments called Karisma to the public with much interest. Offering 750 units of 3-bedrooms and 2 bathrooms, the 800 sq ft apartments with prices from RM260,000 onwards have been very well received.
Chang said the strong bookings achieved for these affordable units will progressively add on to the Group's sales in the ensuing months.
In Shah Alam, Eco Sanctuary unveiled The Parque Residences. These well-designed low-density apartments with ample amenities focused on health, wellness and sustainability are suitable for first-time homeowners, young families and empty-nesters alike and have garnered considerable interest since its launch in December 2015.
Chang said The Parque Residences will complement the landed homes range of bungalows, semi-dees and terraced villas launched last year.
Down South in Iskandar Malaysia the Group's townships, Eco Botanic, Eco Spring, Eco Summer and Eco Tropics and its two business parks Eco Business Parks I & III continued to enjoy steady sales. Accordingly, small parcels of terraces, cluster and semi-dee homes as well as shops and cluster factories have been selectively launched to meet ongoing customer demand at the respective projects.Â
The Group is also preparing for the launch of Eco Business Park II in the Senai Corridor during the second half of the year to tap onto the strong demand for warehousing facilities and industrial properties there.
Chang shared that the Group is also gaining a following in Penang for Eco Meadows. As at 29 February 2016, Eco Meadows has achieved 90% cumulative sales of the terraced homes first launched in September 2015.
Since the opening of its Sales Gallery and Show Village, a large number of visitors have been welcomed on site which has enabled them to personally experience what an EcoWorld Signature township has to offer. The highly positive response received to date validates the Group's decision to focus on township development on the mainland to capture the growing demand for landed residential homes and commercial properties there.
In the upcoming quarter the Group targets to launch the Bukit Bintang City Centre (BBCC) - plans are underway to make this the foremost leisure-tainment destination at the heart of Kuala Lumpur's retail precinct which will drive demand for the strata offices and serviced apartments comprised within the Phase 1 launch.
On the branding and marketing front the Group's extensive efforts and investment over the last two years to grow its customer database and social media presence have continued to bear fruit. EcoWorld's 2016 family-focused Chinese New Year video, festivities and the Season's Flower Shows were all successfully promoted via social media channels.
This enabled the Group to save on marketing costs whilst still achieving the desired effect of attracting more visitors to its project sites to further increase the pool of registrants for future launches.