KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) announced its results for 4Q FY2024 today. Key highlights include the following: 

• EcoWorld Malaysia achieved RM4.07 billion sales in FY2024, the Group’s highest ever, exceeding its RM3.5 billion sales target by 16%. 

• A breakdown of the FY2024 sales achieved by revenue pillars is set out below: 

Revenue Pillar	RM’mil	Market Segment	%
Eco Townships	1,220	Residential	57%
Eco Rise	1,083
Eco Hubs	656	Commercial	16%
Eco Business Parks	480	Industrial	27%
QUANTUM	626
Total	4,065		100%

 

• Revenue and gross profit for FY2024 increased by 1.4% and 13.3%, respectively, compared to FY2023. Gross profit margin improved from 24.2% FY2023 to 27.0% in FY2024. 

• The Group’s Malaysian Operations contributed PAT of RM343.1 million. This is a record high for EcoWorld Malaysia, mainly due to improvement in gross profit margins of its subsidiaries. 

• Profit after Tax (PAT) for FY2024 (after taking into account Eco World International Berhad’s loss and a RM38.0 million impairment of investment in 4Q 2024) was RM303.5 million which is 60.3% higher than FY2023.  

• Net cash generated from operating activities in FY2024 amounted to RM890.0 million. This is 56% higher compared to FY2023 and close to 3 times the Group’s FY2024 PAT. 

• Gross and net gearing ratios as at 31 October 2024 further reduced to 0.46 times and 0.19 times, respectively, from 0.53 times and 0.25 times as at 31 October 2023.  

• Cash balances (including deposits and short-term funds) remained high at RM1.36 billion. 

• EcoWorld Malaysia’s future revenue remains healthy at RM3.96 billion as at 31 October 2024, underpinning the Group’s future earnings and cash flows in the near and mid-term. 

• The Board of Directors has declared a final dividend of 2 sen per share, bringing total dividends declared for FY2024 to 6 sen per share. 

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

FY2024 has been a phenomenal year for EcoWorld Malaysia. Total sales breached the RM4 billion mark and our Malaysian operations recorded PAT of RM343.1 million, both record highs for the Group.  

The sales and profit achieved in FY2024 are the result of concerted efforts made over the years to: 

• Accelerate value creation at all our developments which have enhanced our pricing power, enabling margins to steadily increase; 

• Broaden and deepen our product range and customer reach through five sizeable revenue pillars, giving us the capacity to serve every segment of the residential, industrial and commercial markets; and 

• Continuously digitalise our operations and improve processes, resulting in faster turnaround times and more efficient and effective use of resources which have successfully contained operational and overhead costs. 

Our projects are also well placed geographically within all three property hotspots of the Klang Valley, Iskandar Malaysia and Penang. In FY2024, our projects in Iskandar Malaysia contributed 57% (RM2.33 billion) of the Group’s sales, followed by 31% (RM1.27 billion) from the Klang Valley and 12% (RM470 million) from Penang. 

Landed residential homes under our Eco Townships pillar made up 30% of total sales with RM1.22 billion recorded. 82% of homes sold under this pillar were priced above RM650,000, demonstrating sustained demand for our upgrader products across all three regions.  

Sales under the Eco Rise pillar recorded the highest growth in FY2024 with RM1.08 billion achieved, more than double the RM509 million recorded in FY2023. This is testament to the success of our duduk apartments in capturing the hearts and minds of a cross-generational group of urban homebuyers in the Klang Valley, Iskandar Malaysia and Penang. More than 2,200 units sold were sold during the year, contributing RM900 million which represents 83% of total Eco Rise sales.  

On the commercial front our Eco Hubs pillar contributed RM656 million in sales for FY2024, 27% higher than FY2023. The strong demand flows from the vibrant communities we have conscientiously built that are now attracting more and more business owners, retailers, F&B operators, investors and customers alike to own, operate and invest in our commercial properties.  

Our industrial pillars, namely Eco Business Parks and QUANTUM, achieved total sales of RM1.11 billion, 6% higher than the previous record high achieved in FY2023. This was bolstered by strong data centre demand with two parcels of industrial land at our first QUANTUM Edge park being sold to Microsoft Payments (Malaysia) Sdn Bhd and Princeton Digital Group for a combined sales value of RM626 million. Sustained demand for ready-built and customised built-to-suit industrial units, as well as smaller plots of industrial lands at our four Eco Business Parks, collectively contributed another RM480 million to industrial sales in FY2024.  

The sales achieved, improved profits and increasing maturity of our projects have generated high net cashflows from operating activities of RM890 million in FY2024. This is 56% above FY2023 and close to 3 times the FY2024 PAT. As a result, our gross and net gearing are at historic low levels of only 0.46 and 0.19 times, respectively, as at 31 October 2024. Future revenue also remains high at RM3.96 billion, underpinning both earnings and cash flow visibility in the near and mid-term. 

Thanks to our strong balance sheet, we are well positioned to expand our landbank to broaden and deepen our market share and increase future pipelines of growth.  

In this regard we have been quite active, with recent acquisitions being: 

• 240.314 acres adjacent to Eco Botanic and Eco Botanic 2 for the planned development of Eco Botanic 3 in Iskandar Malaysia;  

• 8.9 acres situated next to our matured Eco Sanctuary township for the development of serviced apartments with a commercial component; and 

• 847.249 acres land in the Semenyih corridor located right beside Eco Forest for the planned development of Eco Forest 2. 

The above acquisitions will strengthen our Eco Townships, Eco Rise and Eco Hubs pillars. Furthermore, the location of the lands, which are all situated adjacent to our existing matured townships, will enable us to enjoy economies of scale and benefit from the established brand presence and customer following that we have cultivated in the immediate vicinity.  

We are also targeting to acquire more landbank to enable us to serve the continued high demand for industrial products from local, regional and global industrialists. Based on the strong momentum of inquiries as well as referrals that we have been receiving from our network of more than 1,400 businesses operating at our business parks, we believe growth prospects for both our Eco Business Parks and QUANTUM revenue pillars remain very bright. 

Apart from exploring opportunities to increase our landbank for development, we also aim to build up a strategic portfolio of investment properties to be held for recurring income.  

Accordingly, in 4Q 2024, we acquired 108 strata office units at The Stride (now renamed Menara EcoWorld) at Bukit Bintang City Centre (BBCC). Apart from generating rental income, we are confident that these units will appreciate in value, based on the steady increase in both rents and occupancy rates experienced at Menara EcoWorld over the past year.  

There are numerous exciting plans in place to enhance the overall BBCC development and LaLaport Mall. These include the upcoming TUAH 1895 food and lifestyle hub and Immersify KL, an exciting new digital media art gallery and museum adjacent to Menara EcoWorld that will be jointly operated with the Bitgrim Immersify Group from Korea. Both these attractions will be unveiled in 1Q 2025.  

In addition to the above, to further reinforce and enhance the Group’s business model we are actively considering other proposals to expand our recurring income asset base. This is with the aim of strengthening our ability to be able to consistently deliver robust and sustainable future growth, whilst generating steady cashflows that will enable us to continue rewarding our shareholders with good dividends.