Eco World Development’s 3Q net profit up 32%, declares one sen dividend

KUALA LUMPUR (Sept 15): Eco World Development Group Bhd (EcoWorld)’s net profit grew 32% to RM46.39 million for the third quarter ended July 31, 2022 (3QFY22), from RM35.15 million a year ago, thanks to lower finance costs, coupled with cost savings on selling and administrative expenses.

Revenue fell 1.1% to RM443.97 million from RM448.91 million, the property developer’s bourse filing showed.

The group declared an interim dividend of one sen per share, with ex-date on Oct 4.

Cumulative net profit for the first nine months of FY22 increased 11% to RM155.43 million, from RM139.90 million in the previous corresponding period, while revenue was up 7.8% to RM1.48 billion, from RM1.38 billion.

Going forward, EcoWorld said it is well on track to exceed its full year sales target of RM3.5 billion, with RM3.44 billion sales recorded in the first 10 months of FY22.

“We still have another two months of our financial year to go and are positioned to close FY22 strongly, as we continue to pursue our objective of enhancing value for all our stakeholders,” said Datuk Chang Khim Wah, the group’s president and chief executive officer.

“Our remaining undeveloped landbank of 3,731 acres also remains sizeable. However, in the event a good opportunity arises in the near- to mid-term, we are well- positioned to take advantage of it to enhance our future growth prospects, given our current low gearing levels,” he added.

Shares of EcoWorld closed 1.5 sen or 2.2% lower at 66 sen on Thursday, giving the group a market capitalisation of RM1.94 billion.