KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) announced its results for 2Q 2025 (from 1 Feb 2025 to 30 Apr 2025) today. Key highlights include the following:

• EcoWorld Malaysia achieved RM2.99 billion sales in the 7 months of FY2025, representing 85% of the Group’s FY2025 full year sales target.
• Projects in Iskandar Malaysia contributed RM1.67 billion or 56% of the Group’s total sales, followed by 34% from the Klang Valley and 10% from Penang.
• A breakdown of the YTD sales achieved by revenue pillars as at 31 May 2025 is set out below:

• Sales achieved under the industrial segment set a new record of RM1.20 billion.
• Revenue and gross profit for 2Q 2025 increased by 58% and 80%, respectively, whilst gross profit margin improved to 30.2%, compared to 2Q 2024, mainly due to the following:
  • full consolidation of the results of Paragon Pinnacle Sdn. Bhd., the developer of Eco Grandeur and Eco Business Park V and formerly a 60%-owned joint venture of the Group, and;
  • completion of the sale of 123 acres of industrial land at the QUANTUM Edge business park to Microsoft Payments (Malaysia) Sdn. Bhd.
• Profit after Tax (PAT) for 2Q 2025 was RM129.8 million, 85% higher than 2Q 2024, whilst PAT for 2Q YTD 2025 was RM210.1 million, 50% higher than 2Q YTD 2024.
• EcoWorld Malaysia’s future revenue has further increased to an all-time high of RM5.22 billion as at 31 May 2025, strengthening both the Group’s earnings prospects and cashflow visibility.
• The Group’s net gearing ratio as at 30 April 2025 stands at 0.55 times, underpinned by cash balances (including deposits and short-term funds) of RM1.76 billion.
• Based on the above performance, the Board of Directors has declared a 2nd interim dividend of 2 sen per share in 2Q 2025, bringing total YTD dividends declared to 3 sen for FY2025.

Comments on EcoWorld Malaysia’s performance by Dato’ Chang Khim Wah, President & CEO

EcoWorld Malaysia is well on track to comfortably exceed our FY2025 sales target of RM3.5 billion. In just 7 months of FY2025, we have locked in RM2.99 billion sales which represents 85% of the full year target. The YTD sales in FY2025 is also 37% higher than what we achieved in the same period of FY2024. This has enabled the Group to chart an all-time high in our future revenue position which stands at RM5.22 billion as at 31 May 2025.

Our Iskandar Malaysia projects were the largest contributors to FY2025 YTD sales (RM1.67 billion) backed by solid performance of our Klang Valley (RM1.02 billion) and Penang (RM302 million) projects.

The industrial segment under our Eco Business Parks and QUANTUM pillars continued to perform exceptionally well, with combined sales of RM1.20 billion secured as at 31 May 2025. This already exceeds our full year industrial sales of RM1.11 billion recorded in FY2024, setting a new benchmark in industrial sales for the Group.

We continue to see sustained demand from local manufacturers for our ready-built factories and smaller plots of industrial lands across our business parks in Iskandar Malaysia and the Klang Valley. In addition, interest from global industrialists seeking bigger plots of land has not wavered. This is evidenced by the recent sale of 32.9 acres in Eco Business Park II (“EBP II”) in Iskandar Malaysia to Deye New Energy Technology (Malaysia) Sdn. Bhd. (“Deye”). Deye is part of Ningbo Deye Technology Co., one of the China’s high-tech enterprises and a major player in the global solar inverter market. The site at EBP II is being acquired for their new regional manufacturing base for solar equipment, from which they plan to serve the Southeast Asian market out of Iskandar Malaysia.

To further ride the wave of strong demand in this sector, in 2Q 2025 we finalised the terms for our strategic partnership with SD Guthrie Berhad and NS Corporation to develop 1,195 acres land in Bukit Pelandok, Negeri Sembilan. Our masterplanning for this exciting new development, located within the Malaysian Vision Valley 2.0 economic corridor and situated only 20 km away from Kuala Lumpur International Airport, is progressing well and we target to launch Eco Business Park VII there by the end of 2025.

On the residential front, our Eco Townships and Eco Rise pillars recorded sales of RM927 million and RM432 million, respectively, reflecting sustained demand for EcoWorld’s upgrader homes as well as high-rise residential units.

On the Eco Townships front, our ability to provide landed homes to serve the mass and upgrader markets will receive a strong boost through the upcoming launch of two major projects. Both Eco Radiance, an 847-acre development in the fast-growing Semenyih corridor, as well as Eco Botanic 3, a 240-acre project in Iskandar Malaysia are targeted to be launched by 1Q 2026, with strong pre-sales registrations of interests received to date.

Under the Eco Rise pillar, our duduk series of apartments continue to power ahead with a cumulative total of 6,397 units sold in less than 5 years since we first introduced this product to the market. From the Klang Valley to Iskandar Malaysia and Penang, nearly all parcels launched within our matured townships are fully sold. To continue to meet the strong demand for duduk, we will shortly be launching another two parcels, Terra @ Eco Ardence (Klang Valley) and Sa.Young 3 @ Eco Botanic 2 (Iskandar Malaysia).

Apart from duduk apartments we were also pleased to note the strong uptick in interest from foreign buyers for SWNK Houze at BBCC, as long-term value continues to be created through the numerous new placemaking initiatives there, which include TUAH 1895, immersify KL and the upcoming Mitsui Outlet Park @ LaLaport.

Finally, our Eco Hubs pillar recorded RM430 million sales as at 31 May 2025, an 83% increase compared to the same period in FY2024. These sales comprise a broad range of commercial products, from shop offices to office suites, as well as commercial units situated within our townships, duduk and Eco Business Parks developments.

EcoWorld Malaysia’s robust sales performance has generated a positive spill-over effect on our other key financial measures. Apart from the substantial increase in the Group’s future revenue to RM5.22 billion as at 31 May 2025, our cash balances (including deposits and short-term funds) as at 30 April 2025 was RM1.76 billion, also a record high for the Group. In addition, we are expecting more than RM1 billion cash inflows from the remaining proceeds of our 5 large-tract industrial land sales secured in FY2024 and FY2025.

Premised on the above, we are well positioned to continue rewarding our shareholders with good dividends. Accordingly, the Board has declared a 2nd interim dividend of 2 sen per share for the current quarter, bringing total YTD dividends declared to 3 sen per share.