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23rd March 2023

EcoWorld Malaysia achieves RM1.35 billion sales in 4 months Industrial segment leads the way with strong interest from global players

KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) announced its results for 1Q 2023 today. Key highlights include the following:

  • EcoWorld Malaysia recorded 35 billion sales in the 1st four months of FY2023. This is more than the RM1.28 billion achieved in the same period of FY2022 and it represents 38.5% of the Group’s FY2023 sales target of RM3.5 billion.
  • The Eco Business Parks (EBP) industrial segment recorded the highest sales, contributing RM616 million, making up 46% of total year-to-date sales achieved, boosted by strong demand from local and international industrialists.
  • Sales of residential homes totalled RM548 million in the 1st four months of FY2023 with sustained interest in EcoWorld Malaysia’s upgrader products.
  • EcoWorld Malaysia’s future revenue increased to RM4.03 billion as at 28 February 2023, providing clear cashflow and earnings visibility.
  • The Group’s Revenue and Share of results from Malaysian joint ventures for 1Q 2023 were 9.1% and 18.9% lower respectively than 1Q 2022. This was mainly due to:
  • lower levels of work progress and site activities in 1Q 2023 due to the earlier Chinese New Year festive period in January this year, and
  • lower contributions in 1Q 2023 from several parcels which were substantially completed in
  • Despite lower revenue, gross profit in 1Q 2023 was higher than 1Q 2022 by 10.4% and gross profit margin improved to 26.1% in 1Q 2023 vs 21.4% in 1Q 2022 due to cost savings realised on completed phases.
  • The above contributed to the Profit After Tax (PAT) of RM57 million achieved for 1Q 2023.
  • EcoWorld Malaysia’s gross and net gearing levels as at 31 January 2023 remain low at 54 and

0.33 times respectively, giving the Group ample capacity to acquire new lands or explore strategic joint ventures to enhance its future growth prospects.

Comments on EcoWorld Malaysia’s performance

“The Group’s highly diversified product range, which now includes sizeable industrial and commercial portfolios to add to our large residential base, enabled us to achieve RM1.35 billion sales in the first four months of FY2023. Our business park segment was off to an especially strong start following a strategic sale to the Haitian Group of 92 acres of industrial lands at EBP II in Iskandar Malaysia,” said Dato’ Chang Khim Wah, President & CEO of EcoWorld Malaysia.

The Haitian Group is a leading industrial equipment manufacturer from China specialising in the production of a wide range of energy saving, eco-friendly and high precision industrial machines and solutions. Their sophisticated product portfolio includes the manufacture of mass and high-precision injection moulding machines covering the entire spectrum of the plastics processing industry to serve the automotive, packaging, medical, electronics, logistics and consumer goods sectors.

“We are gratified that the Haitian Group chose to work with EcoWorld when they were looking for a suitable site to establish a substantial manufacturing base in Malaysia. This landmark deal is the result of many years of concerted efforts by our team to build up our network and actively pursue leads with multinational industrialists,” Chang said.

“The presence of such a large global player at our business park will have a highly catalytic effect to draw in other upstream and downstream businesses. Apart from accelerating development and value creation for the remaining lands at EBP II, large technologically advanced foreign direct investments such as that of the Haitian Group are able to generate positive spillover benefits for the State and broader community through the creation of higher value jobs and increased business opportunities for locals,” he commented.

In addition to the above, sales of Cluster, Semi-Dee and Service factories at EBP I & EBP III in Iskandar Malaysia and EBP V in the Klang Valley, as well as smaller plots of industrial lands for built- to-suit factories at EBP V, also contributed to the RM616 million achieved by the Group’s industrial segment.

Commercial products contributed RM182 million sales which is approximately 41% of the actual FY2022 full year sales from this segment. In the Klang Valley, shops and shop offices at Hana Square @ Eco Ardence saw good take-ups and down south in Iskandar Malaysia, sales picked up for retail, shop and office units at Eco Galleria @ Eco Botanic, Eco Boulevard 2 @ Eco Botanic 2, Eco Palladium @ Eco Spring as well as Eco Biz 3 @ Eco Tropics. The products are all located within matured townships and the encouraging sales performance demonstrates the commercial vibrancy of the EcoWorld projects that have increasingly attracted more retailers, F&B operators and other businesses to be established there.

“Our core residential business saw total sales of RM548 million in the first four months of FY2023. We continued to see sustained interest in our upgrader products. Demand remained strong for our CoHomes, Garden homes, Cluster homes, Terraces and Semi-Dees available at Eco Majestic, Eco Forest, Eco Sanctuary, Eco Ardence and Eco Grandeur in the Klang Valley, Eco Botanic 1 & 2, Eco Spring, Eco Tropics in Iskandar Malaysia and Eco Horizon in Penang. Bukit Bintang City Centre’s launch of the SWNK Houze serviced apartments and the continued sale of the Eden Condominium units at Eco Sanctuary added to the overall sales achieved,” Chang mentioned.

“Going forward we have many exciting new launches lined up. 2023 is EcoWorld’s 10th anniversary and as part of the “We’re 10” celebrations we have further refined many of our most successful products and concepts. First up is our popular duduk apartments – these compact homes, initially targeting younger homeowners in the Klang Valley, have been reconceptualised for every generation and will soon be available in Iskandar Malaysia and Penang. Designed with all of life’s necessities whilst still being attainable from a pricing standpoint, duduk offers ideal homes for urbanites of every age,” he said.

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