17th December 2020
RM3.8 BILLION SALES ACHIEVED BY ECOWORLD BRAND EcoWorld Malaysia exceeds FY2020 sales target and declares maiden dividend & EcoWorld International targets to declare dividends in FY2021
KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) and Eco World
International Berhad (EcoWorld International) announced their results for the 4Q 2020 today.
Key highlights include the following:
– EcoWorld Malaysia exceeded its FY2020 sales target of RM2 billion by 15% with full-year sales
amounting to RM2.3 billion. Sales in 4Q 2020 exceeded RM1 billion, higher than the RM960
million recorded in 3Q 2020. Collectively, 2H 2020 sales comprise 85% of total sales in FY2020.
– Revenue in 4Q 2020 is the highest recorded in the four quarters of FY2020, signifying a healthy
rebound in both sales as well as construction progress, following gradual relaxation of the
Movement Control Order (MCO) from 3Q 2020 onwards.
– Gross Profit was lower than FY2019 mainly due to closure of sales galleries during the MCO, the
temporary cessation of site activities from mid-March to mid-June and the cumulative impact of
inventories written down in 3Q 2020 and 4Q 2020.
– To mitigate the impact of the lower gross profit, extensive cost control measures were implemented
Group-wide. This resulted in total savings of RM84.5 million in Selling, Marketing and
Administration Expenses in FY2020.
– As a result, the Group was able to record Profit Before Tax (PBT) of RM169.0 million and Profit
After Tax (PAT) of RM135.2 million in FY2020. If not for the write down on inventories of
RM98.8million, PBT would have been RM268 million which is slightly higher than FY2019 PBT
of RM266 million.
– Future Revenue remains strong at RM3.7 billion as at 31 October 2020. Apart from being among
the highest in the industry, the ratio of Future Revenue / Net Debt which stands at 1.3x is also well
above that of most other property developers. This will continue to provide both earnings visibility
and cashflow certainty going forward.
– Premised on the results achieved, the Board of Directors of EcoWorld Malaysia has declared a
maiden interim dividend of 2 sen per share to its shareholders for FY2020.
– EcoWorld International recorded its strongest quarterly sales with RM448 million achieved in 4Q
2020 bringing full-year sales to RM1.4 billion. This is 25% higher than FY2019 despite the
challenging market conditions and disruption in marketing plans for many locations due to Covid-
19. The substantially stronger sales clearly reaffirm London’s position as a major property
investment destination for global property investors.
– Gross profit for the year of RM99.99 million was substantially higher than FY2019 due to
commencement of revenue and profit recognition of West Village in Australia, following
completion and commencement of handover of units sold to customers.
– EcoWorld International recorded PBT of RM113.89 million and PAT of RM82.58 million in
FY2020, as compared to PBT of RM190.30 million and PAT of RM190.28 million in FY2019.
PBT and PAT in FY2020 were lower due to lower share of results in joint ventures and
commencement of accounting impairment of goodwill.
– The lower share of results in joint ventures was partly due to Covid-19 site closures and social
distancing measures implemented which resulted in slower progressive Build-to-Rent revenue
recognition and lower number of units being completed and handed over in FY2020.
– As at 31 October 2020, EcoWorld International’s Future Revenue stands at RM2.9 billion whilst its
Gross and Net Gearing levels remain low at 0.45x and 0.34x respectively.
– Handover of Wardian London commenced in 4Q 2020 and following some delays due to the “Stage
4” movement restrictions imposed in Melbourne from early August 2020 to late September 2020,
Yarra One is now nearing completion and handover is on track to commence shortly.
– Following handovers of West Village as well as Wardian London in FY2020 and with Yarra One
completion on the horizon, EcoWorld International targets to repatriate some profits from the
Group’s UK and Australia projects for dividend declaration in FY2021.
Comments by Tan Sri Liew Kee Sin, Chairman of EcoWorld Malaysia on performance and prospects
On a combined basis, the EcoWorld brand achieved RM3.8 billion sales in Malaysia, the United
Kingdom and Australia. It is the same level recorded in FY2019 which is a remarkable result given the
extreme disruptions Covid-19 has caused globally and in every market in which we operate.
This outcome could not have been secured if not for Team EcoWorld’s ability to swiftly adapt to new
market realities and seize every opportunity presented before them to further broaden and deepen the
EcoWorld brand’s market share.
For FY2021, EcoWorld Malaysia and EcoWorld International have set a combined sales target of RM5
billion. Based on the strategic plans we have put in place in every geographic location to restrategise
and refocus on key segments of the market that have proven depth and resilience, I am confident that
the target, despite being 30% higher than the sales achieved in FY2020, is attainable.
In addition, the proactive steps taken in FY2020 to reduce and reset the cost structure of both our
Malaysian and International operations coupled with our team’s willingness to continually reinvent and
relearn the way we do business, will help counteract the impact of a soft property market and preserve
cashflow and profits. Based on the measures undertaken, I am therefore confident the EcoWorld brand
is well positioned to not just come out of this crisis but to thrive in the years ahead.
Comments on EcoWorld Malaysia’s performance in FY2020 and plans for FY2021
“The resurgence in buying interest we experienced following the re-opening of our sales galleries in 3Q
2020 continued throughout 4Q 2020. As a result, EcoWorld Malaysia recorded almost RM2 billion
sales in 2H 2020. We are indeed grateful to our customers for their tremendous vote of confidence in
our properties and projects which enabled us to achieve a total of RM2.3 billion sales for FY2020,
exceeding the sales target set by a comfortable 15% margin. This clearly demonstrates that by working
hard to ensure that we have the right products in the right location, we have and will continue to be able
to tap into the strong fundamental demand for quality homes, even in the most challenging of times,”
said Dato Chang Khim Wah, President & CEO of EcoWorld Malaysia.
Chang shared that apart from the solid performance of its residential developments, rising demand for
the Group’s business park projects, which saw sales increase by 193% from RM75.2 million in 3Q
YTD 2020 to RM220.4 million in 4Q YTD 2020, also contributed to the overall sales achieved.
“A little known fact about EcoWorld Malaysia is the size of our industrial portfolio. We are quite a big
player in this space with approximately 1,760 acres under development. This gives us total Gross
Development Values (GDV) of RM9.5 billion from our four Eco Business Parks located in Senai,
Tebrau and Pasir Gudang in Iskandar Malaysia and Puncak Alam in Selangor. As at 31 October 2020
we have achieved cumulative sales of RM2.1 billion from our business parks segment,” he highlighted.
“Over the years, we have built up a strong network of contacts with local and foreign industrialists and
developed a close working relationship with both Federal and State regulatory authorities involved in
the promotion and approval of industrial developments in Iskandar Malaysia and Selangor.
In FY2021, we intend to further grow our share of this important market. We are confident that the
uptick in buying interest we experienced in 4Q 2020 can be sustained. The attractive tax and other
incentives offered by the Malaysian Government under PENJANA and as announced in Budget 2021,
to increase foreign direct as well as local private investments in key industries and service sectors, will
help underpin the growing demand,” Chang continued.
On the residential front Chang mentioned that the official launch of the Group’s new duduk series of
vertical townships in two locations, namely Huni @ Eco Ardence and Se.Ruang @ Eco Sanctuary
contributed to the sales achieved in 4Q 2020. Since its launch in September 2020 over 1,000 units of
the semi-furnished 1,000 sq ft apartments with starting prices from RM393,000 per unit have been sold
to-date – the strong demand, coming mainly from young homeowners, adds to the pool of potential
upgraders for both these townships in the future.
“Our strategic decision to focus on meeting the housing needs of the M40 / Gen Y & Gen Z groups will
expand further in FY2021 with the launch of numerous exciting new projects and products in the
pipeline. First up is the upcoming launch of Eco Botanic II in early 2021. We have received
overwhelming interest for the first phase terraced homes priced from RM500,000 to RM800,000 which
are well within the affordability range of young M40 families,” Chang said.
“We also plan to officially launch a new product called Co-Homes at Eco Grandeur in the Klang
Valley and Eco Horizon in Penang. Designed to provide an innovative solution for all generations,
customers can choose to buy a single 1,000 sq ft unit (at a starting price of less than RM400,000) or
mix & match ground floor and / or first floor units for harmonious multi-generational living,” he
“In Kuala Lumpur, we will shortly be unveiling SWNK Houze @ BBCC which offers a wide range of
serviced apartments from studio units, 1-bed, 2-beds, 2+1 beds, 3-beds as well as dual key units with a
cool, urban-chic vibe in FY2021. This will enable us to meet the needs of young urbanites and investors
seeking to own a residential property within the city,” said Chang.
SWNK Houze will be situated right above BBCC’s Entertainment Hub and immediately adjacent to the
Mitsui-Lalaport Retail Mall. Purchasers and residents of SWNK Houze will therefore be able to enjoy
the best of inner-city living with a wide variety of retail and entertainment options (offered by Sony
Music’s Zepp Hall, the Malaysian Grand Bazaar and cineplexes which are all housed within the
For FY2021, EcoWorld Malaysia is targeting to achieve sales of RM2.875 billion which is a 25%
increase from the actual RM2.3 billion sales achieved in FY2020. The above new launches are expected
to contribute towards the attainment of the sales target. This will enable the Group to further strengthen
its future revenue position which stands at RM3.7 billion as at 31 October 2020, still one of the highest
in the industry.
Comments on EcoWorld International’s performance in FY2020 and plans for FY2021
“We are pleased to share that despite a turbulent year caused by the Covid-19 pandemic,
commencement of handover of Wardian, London has started in 4Q 2020. Launched in late 2015,
Wardian comprises two residential towers of 50 and 55 storeys. As at 31 October 2020, 249 private
units have been handed over to the purchasers with a balance 293 private units sold to be handed over
in the next few months. Including other projects in the Group’s portfolio, the Group has delivered more
than 2,000 private units to purchasers since 2018,” said Dato Teow Leong Seng, President & CEO of
“By the 1st quarter of FY2021, we would have commenced handover of Yarra One in Melbourne. Once
that has been completed, we would have effectively delivered to purchasers the bulk of the portfolio of
projects we started with when we were listed in 2017. This will release substantial amounts of cash and
following repayment of the respective project loans, we intend to repatriate some of the cash / profits
generated for dividend declaration by EcoWorld International in FY2021,” Teow continued.
On the sales front, EcoWorld International launched The Modern, the final block of Embassy Gardens
and Lily House, the third residential block in Verdo Kew Bridge in 4Q 2020. Construction works of
these two residential blocks are ongoing and the Group expects them to start contributing significant
revenue upon completion in FY2022.
“We have also been making good progress on our proposed sale of Build-to-Rent (BtR) blocks in
Quayside Barking (formerly known as Tesco Barking). Major institutional investors continued to show
keen interest in the asset following extensive discussions with management. They have also given some
good feedback which we are taking on board to further refine the development plans. As such the sale
of Quayside Barking has been rescheduled to FY2021,” Teow explained.
“Looking forward into FY2021, we believe that demand for London properties will remain strong.
Property agents are expecting the acute undersupply of residential properties in London to worsen in
the coming years due to reduced supply as a result of disruptions caused by Covid-19. This will
continue to provide support to London’s property prices and rental rates. More importantly,
undersupply of homes will sustain the demand for rental properties and attract more investment into the
UK’s BtR sector,” Teow continued.
Down south in Australia, major local banks are predicting a recovery in housing sentiment on the back
of improved economic conditions in 2021. A rollout of the Covid-19 vaccine may also enable crossborder
travel to resume which could improve the buying interest of foreign purchasers. Management
has planned a series of marketing events for FY2021 to take advantage of the recovery in home buying
interest and foreign demand for residential properties to sell the remaining units of West Village in
Sydney and Yarra One in Melbourne.
EcoWorld International has set a sales target of RM2.2 billion for FY2021 which takes into account the
expected gradual economic recovery and market sentiment in the United Kingdom and Australia. The
target will be revisited if the property markets conditions change significantly.