EW Berhad achieves RM955 Million sales in the first 4 months of FY2017
Shah Alam: Eco World Development Group Berhad (EW Berhad) announced today that it had achieved RM955 million sales in the first four months FY2017. This is 57% higher than the RM607.8 million in the first four months of FY2016.
RM797 million was contributed by projects in the Klang Valley whilst the remaining RM158 million came from projects in Iskandar Malaysia and Penang.
The significantly higher sales numbers achieved this year is the result of strong follow-through momentum from the Group’s mega-launches in the final quarter of FY2016. Three of the projects launched, namely Eco Grandeur, Eco Ardence and Bukit Bintang City Centre (BBCC) led the way in the achievement of current year sales.
“We are delighted with the continued strong response to our latest projects, namely Eco Grandeur, Eco Ardence as well as BBCC. These three developments are uniquely differentiated to cater to very separate target markets. Further, they are located in three distinct property hotspots in the Klang Valley which enable us to reach out to and serve the needs of a wide and diversified pool of property purchasers,” said Dato Chang Khim Wah, President & CEO of EW Berhad.
In the North-Western Klang Valley Corridor, new homeowners and upgraders continue to flock to Eco Grandeur attracted by the affordably-priced terraces and well-designed garden homes nestled within beautifully designed Victorian gardens.
Eco Ardence, situated on the more matured and established Central spine of the Klang Valley corridor, right off the Setia Alam-NKVE Interchange saw strong take-ups from more affluent purchasers for its luxurious semi-detached homes and bungalows.
Meanwhile BBCC also recorded good sales with increasing interest from young urbanites and overseas purchasers who appreciate its outstanding connectivity at the heart of Kuala Lumpur and the project’s one-of-a-kind leisure-tainment offer with a world-class retail mall to be operated by Mitsui Fudosan and Sony Music’s Zepp Hall to anchor its entertainment block.
“Over the next few quarters, we expect interest and sales momentum in these three projects to pick-up further. Our fully landscaped show village at Eco Grandeur which features 12 units of the 20 x 65 ft Graham terraces and the 30 x 60 ft Avenham garden homes has just been opened – this provides prospective homebuyers with a real taste of what our latest and largest Signature EcoWorld township offers,” said Chang.
“In downtown Kuala Lumpur we recently unveiled BBCC’s new 10,700 sq feet sales gallery / event hall & atrium which is located right next to EcoWorld International’s new sales gallery. BBCC’s tagline – “Life is Spectacular” – really takes on fresh meaning when viewed from within this stunning facility,” said Chang.
The strong sales performance in the 1st quarter was also boosted by the launch of Eco Sanctuary’s final landed, gated and guarded precinct known as Grandezza followed by the opening of a new show village which features four luxurious show units, two bungalows and two semi-Ds in February 2017. The semi-Ds which come in various built-ups starting from 2,903 sq ft and bungalows with built-ups from 3,288 sq ft onwards were very well-received by upgraders living in the vicinity of the matured Kota Kemuning corridor.
With regard to the Group’s other ongoing projects in Iskandar Malaysia and the Klang Valley, the focus in the 1st quarter was on handovers and preparations for handovers of the 1st phases of products sold. In Iskandar Malaysia, Eco Botanic has successfully handed over its 1st phase of semi-dees and will shortly be handing over Eco Boulevard, its commercial enclave, to further activate the township. This will be followed by handovers of homes at Eco Spring, Eco Summer and Eco Tropics within the next one to two quarters. In the Klang Valley, Eco Sky recently delivered its retail shop-offices to customers and Eco Majestic will be handing over the 1st phase of its terrace homes in April 2017.
By the end of FY2017 the Group should have handed over approximately 4,700 units of completed properties. This will elevate the EcoWorld brand to a new level as customers are welcomed into their new homes and business activities commence in 7 Signature EcoWorld developments spread across the Klang Valley and Iskandar Malaysia.
Up north in Penang sales activities are expected to increase in the second half of 2017 with the launch of Eco Horizon, to-date the Group’s largest township development up north.
EW Berhad also made good progress on the corporate front with the majority of its outstanding deals completed or nearing completion:
- Since the end of the previous financial year two agreements were entered into with the Employees Provident Fund Board (EPF) for the EPF to take up a 40% equity interest in two of its development entities, namely:
- Paragon Pinnacle Sdn Bhd, the developer of Eco Grandeur and Eco Business Park V in the Klang Valley and
- Eco Horizon Sdn Bhd which will be developing Eco Horizon and Eco Sun up north in Batu Kawan on the Penang Mainland
- The Company issued its 3rd & final tranche of placement shares on 6 March 2017 – this completes the private placement exercise earlier announced with total proceeds raised from all three tranches amounting to RM770.1 million which will be utilised to fund the Group’s expansion plans, provide working capital and repay bank borrowings, and
- On 9 March 2017, Eco World International Berhad (EWI) issued its Prospectus in conjunction with its Proposed Initial Public Offering (IPO which is expected to take place in early April 2017
For the 1st quarter of FY2017, the Group recorded revenue of RM592.7 million, which is 27.9% higher than the RM463.5 million reported for 1Q2016.
Profit after tax (“PAT”) as at 31 January 2017 stood at RM116.2 million boosted by a gain of RM94.8 million which arose from the application of FRS 10 – Consolidated Financial Statements to recognise the impact of a change in the Group’s interest in Paragon Pinnacle from a 100% subsidiary to a 60% joint venture (please refer to announcement for further details).
On the international front EWI reported that its cumulative sales for the 1st quarter ended 31 January 2017 was RM6.488 billion based on exchange rates as at 31 January 2017 vs RM5.29 billion as at 31 October 2016 based on the exchange rates then prevailing.
“FY2017 is shaping up to be a very good year for the Group. Team EcoWorld’s hard work backed by unwavering support from our customers, shareholders and business associates over the last three years have established a solid foundation for sustained and exciting growth. EPF’s entry as a 40% shareholder to jointly develop another four projects, the completion of our 25% private placement and the strong 1Q FY2017 profits will also strengthen our balance sheet and help us better manage our gearing position going forward,” said Chang.
“We are confident that we are on track to achieve our sales target of RM4 billion sales in Malaysia and once we complete our subscription for the 27% stake in EWI, we will be entitled to recognise a proportionate share of EWI’s sales for FY2017 which will add on to our pipeline of future earnings,” he added.