KUALA LUMPUR (June 22): Eco World Development Group Bhd (EcoWorld) reported a 37.26% increase in its net profit for the second quarter ended April 30, 2023 (2QFY2023) to RM62.69 million, from RM45.67 million a year ago, thanks to higher contributions from its Malaysian joint ventures (JVs).

In a Bursa Malaysia filing on Thursday (June 22), the group said the profits from its local JV projects — namely Eco Grandeur, Eco Business Park (EBP) V, Eco Ardence and Eco Horizon — amounted to RM24.05 million for the quarter, up 47.41% from 2QFY2022.

Meanwhile, EcoWorld International Bhd (EWI), in which EcoWorld has a 27% stake, contributed a profit of RM300,000 as opposed to a loss of RM15.6 million in 2QFY2022.

EcoWorld's earnings per share rose to 2.13 sen in 2QFY2023 from 1.55 sen.

Its bottomline improved despite a 16.98% contraction in its revenue to RM420.82 million from RM506.89 million, after several parcels were substantially completed in FY2022.

For the first six months of the financial year ending Oct 31, 2023 (6MFY2023), its net profit rose 9.77% to RM119.69 million from RM109.04 million a year ago, after EWI's losses narrowed significantly to RM4.56 million.

However, revenue shrank 13% to RM905.56 million from RM1.04 billion, in line with reduced contribution from the substantial completion of several parcels.

The group has declared an interim dividend of two sen per share, payable on July 20, 2023.

In an accompanying statement, EcoWorld president and chief executive officer Datuk Chang Khim Wah said the group has locked in RM2.4 billion or 68.5% of its annual sales target in the first seven months of FY2023.

“Our industrial portfolio continues to outperform with RM838 million achieved year-to-date which represents 111.3% of FY2022 full-year sales from this segment. This is significant because last year was already a record year in terms of the group’s EBP (Eco Business Park) sales," he said.

He added that the group's future revenue has risen to RM4.29 billion as at May 31, 2023, improving its earnings and cashflow visibility.

At the noon break, EcoWorld rose one sen or 1.23% to 82 sen, for a market capitalisation of RM2.41 billion.