KUALA LUMPUR: Eco World Development Group Bhd's net profit for the second quarter ended April 30, 2024 (2QFY24) rose 11.7 per cent year-on-year (YoY) to RM70.05 million from higher sales contribution from active and newly launched phases.
It made a net profit of RM62.7 million in the same period last year.
Revenue for the quarter under review rose 32.1 per cent YoY to 555.76 million from RM420.82 million in 2QFY23.
The company said the main projects which contributed to revenue and gross profit in Q2FY24 were Eco Botanic, Eco Botanic 2, Eco Spring, Eco Tropics, Eco Business Park I, Eco Business Park II and Eco Business Park III in Iskandar Malaysia and Eco Majestic, Eco Forest and Eco Sanctuary in the Klang Valley. Gross profit margin also improved to 26.5 per cent in the quarter under review mainly due to realisation of cost savings of certain completed and near completion phases.
For the six-month period, its net profit was up 16.7 per cent to RM139.68 million from RM119.7 million a year ago. Revenue for the period rose to RM1.09 billion compared to RM905.56 million in the corresponding period last year.
President and chief executive officer Datuk Chang Kim Wah said EcoWorld Malaysia achieved RM2.18 billion sales in seven months of financial year 2024 (FY24), fuelled by robust demand for its projects in Iskandar Malaysia which contributed 61 per cent of the group's total year-to-date sales.
Sales of residential homes under its Eco Townships pillar remained the largest segment with RM855 million sales, of which 90 per cent comprised upgrader homes priced above RM650,000. Its Eco Rise pillar is also fast gaining ground as a significant driver of the group's sales.
In particular, the 'duduk' series which was created to serve the needs of first time and young homeowners have become increasingly popular.
"From only two parcels in the Klang Valley in 2020, we now have seven 'duduk' apartments spread across the central, northern and southern regions, all of which have been well-received by the market.
"Group-wide, the 'duduk' series contributed RM612 million in sales up to May 31, 2024," he said.
Chang added the group is well-positioned to ride the current strong wave of demand in the industrial market, especially in the southern region.
Sales amounting to RM420 million have been recorded under Eco Business Parks (EBP) pillar up to May.
"On June 7, 2024, we entered into an agreement to sell 123.14 acres of industrial land located within EBP VI to Microsoft Payments (Malaysia) Sdn Bhd for RM402.3 million. This is the first sale for EBP VI in Kulai, Iskandar Malaysia and we are confident that the planned development of a data centre there by Microsoft will amplify demand for our other industrial products," he added.
