Full article about the latest results for Eco World here. The sales achievement for Eco World looks good. Within 4 months, it has already secured RM955 million sales and this is 57 percent higher than the first four months of 2016 (RM607.8 million). Out of the RM955 million total, RM797 million was for projects in the Klang Valley, while the remaining RM158mil was for projects in Johor and Penang (RM18 million). My good friend contributed to their sales in the Klang Valley, their Semenyih development. The target for FY2017 is pretty aggressive, at RM4 billion for financial year 2017. Just last month, their chief executive officer Datuk Chang Khim Wah said, “We are optimistic of achieving our RM4bil sales target this year amid a challenging market condition.” I think this meant that the second half is going to be much better for Eco World. In terms of undeveloped landbank for Eco World, it currently stands at 5,500 acres with a future potential GDV of RM77.5bil.
Profitability wise, read here for full article. It’s even better actually. Net profit for Eco World Development Group Bhd surged 461 percent to RM116.16mil in the first quarter ended Jan 31, 2017 compared with RM20.67mil in the same period last year. This is due to gain from its dilution of its equity interest in Paragon Pinnacle. Revenue also jumped to RM592.71mil against RM463.51mil previously. The dilution was because of the change in the group’s interest in Paragon Pinnacle from a 100% subsidiary to a 60% joint venture. Employee Provident Fund (EPF) has subscribed to 40% of Paragon Pinnacle’s enlarged share capital pursuant to the terms of the subscription and shareholders’ agreement between the parties. The main reason for the significantly higher sales numbers was because of the strong follow-through momentum from the group’s mega-launches in the final quarter of FY2016. They include Eco Grandeur, Eco Ardence and Bukit Bintang City Centre.
I am happy that my EPF has subscribed to the potential growth of the huge Bukit Bintang City Centre (BBCC). In fact, I can now say I indirectly own a few bricks in the BBCC? 🙂 The numbers from this developer remains good and tells us that the property market is nowhere near a crisis. No, the economy is not in a crisis because if the economy goes down, then it’s best not to buy any property. Remember, during a crisis, property prices can fall substantially within a short period of time. Happy following and perhaps buying and staying in future.
written on 16 March 2017
Next suggested article: Eco World International, EPF, PNB and Guocoland on same ‘team.’