How many companies do we know who did not perform well for the first 6 months BUT they could still hit their yearly target because they will start to do well in the second half of the year? Not many of these companies around that I know. Of course even during this COVID-19 situation, there are those few essential companies where their first 6 months performance were fantastic. Glove companies for example. I am sure you have heard of them. What about property developer then? Here’s one such company yeah.
Article in theedgemarkets.com CGS-CIMB said that Eco World Development Group (EcoWorld) set a RM2 billion sales target for its financial year ending October 31 2020 but it has only achieved a lower sales for the first 6 months and one main reason was because of the Movement Control Order (MCO) However, CGS-CIMB also said that the group could still hit its current target because of good sales momentum and aggressive marketing initiatives.
In an announcement yesterday, EcoWorld said the mandatory closure of all its sales galleries and construction sites throughout the MCO period affected earnings, with revenue for the second quarter ended April 30, 2020 falling 36.4% to RM345.4 million from RM543.18 million a year ago. Net profit has fallen by 48% to RM21.39 million from RM41.17 million previously. For more details, do read the article here: Article in theedgemarkets.com
Do we think the recent property market boost under PENJANA (click here to read more) will also be helping property developers? If the answer is yes, then we could now also look at the whole market as well yeah. It meant that EcoWorld will not be the only property developer who will benefit from it. Oh yeah, as usual, if we could not buy their properties, we could still buy their shares if we believe what the analysts are saying and what the companies are announcing. I personally do not own any EcoWorld shares. Their latest overview in number as below:
Happy understanding and following.
Next suggested article: Just because buyers does not know does not mean developer can do anything they like