KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) announced its results for 2Q 2022 today.
Key highlights for 2Q 2022 include the following:
Comments on EcoWorld Malaysia’s performance in 2Q 2022
“EcoWorld Malaysia continued to experience steady sales in 2Q 2022 with RM2.170 billion achieved in seven months – this places the Group well on track to achieve our full year sales target of RM3.5 billion. The largest percentage increase in sales since our last reporting period came from our Iskandar Malaysia projects. Sales almost doubled from RM315 million as at 28 February 2022 to RM617 million as at 31 May 2022,” said Dato’ Chang Khim Wah, President & CEO of EcoWorld Malaysia.
Chang mentioned that the recent launch of Forte and Forte+ Residences, a new phase of 33’ x 75’ Cluster Homes at Eco Spring, at average prices of RM1.2 and RM1.4 million per unit respectively and the Charmborough series of 22’ x 70’ terraces by Eco Botanic 2, at average prices of RM920,000 per unit, contributed to the sales increase in Iskandar Malaysia.
“Our strategy to introduce more upgrader homes to complement several starter homes series launched in FY2021 began in 1Q 2022 in the Klang Valley and Penang. We are pleased that response has been very good for all the higher-end products launched this year thanks to the strong following the EcoWorld brand continues to command in the upgrader and luxury homes segment across all three regions of the Group’s operations,” Chang mentioned.
Chang noted that the opening of the country’s borders, particularly between Malaysia and Singapore has helped boost demand in Iskandar Malaysia. More notably, it has had a significant impact on the Group’s business park sales. As at 31 May 2022, total sales by the Group’s four business parks stand at RM447 million which is 93% of the full year sales achieved by this segment in FY2021.
“Since 1 April 2022, we have been experiencing much higher walk-ins at all our galleries in Iskandar Malaysia. On the residential front, the demand has been mainly for upgrader products as Malaysians working in Singapore return with a renewed appetite to upgrade their homes, fueled by the strength of the Singapore dollar and generally higher levels of savings accumulated over the past two years. We have also been receiving an increasing number of enquiries from overseas industrialists at all our business parks both in the Klang Valley and Iskandar Malaysia. Along with the strong local demand which we were already experiencing over the last 18 months, we are confident that the positive effects of the border re-opening will continue to be felt in 3Q and 4Q 2022,” said Chang.
With regard to macroeconomic and sectoral concerns caused by rising inflation and construction costs, supply chain disruptions and interest rate hikes, EcoWorld Malaysia’s Board acknowledged that these will have an impact. However, they are of the view that the Group is strongly positioned to ride out the storm based on the following:
“Based on the Group’s improving balance sheet and cashflow position, the Board has declared an interim dividend of 2 sen in 2Q 2022. As we pursue our strategy of enhancing value for our customers, we also aim to improve our profitability to enable us to continue rewarding our shareholders. We are also actively on the lookout for good landbank to take advantage of our low net gearing of only 0.36 times as at 30 April 2022. This will enable us to further extend the development life of our current portfolio of matured projects for the long-term benefit of our shareholders,” Chang said.