KUALA LUMPUR (Sept 21): Eco World Development Group Bhd’s net profit for the third quarter ended July 31, 2023 (3QFY2023) climbed 43% to RM66.34 million or 2.25 sen per share, from RM46.39 million or 1.58 sen per share a year ago, driven by improved site progress activities and product pricing as well as cost savings upon the finalisation of certain completed projects in phases.

Quarterly revenue grew marginally by 7.41% to RM476.85 million from RM443.97 million a year earlier, mainly driven by the improved site progress activities, its filing to the local bourse on Thursday showed.

The property developer has declared a second interim dividend of two sen per share, to be paid on Oct 19. This brings the total dividend payout for FY2023 to four sen per share.

For the cumulative nine months ended July 31, 2023 (9MFY2023), Eco World’s net profit rose 19.69% to RM186.03 million, from RM155.43 million in the same period last year.

However, revenue slipped 6.86% to RM1.38 billion against RM1.48 billion, mainly due to lower contributions from several parcels which were substantially completed in FY2022.

On prospects, Eco World said it is on track to achieve its FY2023 full-year sales target of RM3.5 billion after the group recorded RM3.06 billion sales in ten months, representing 87.4% of the target.

“Our Eco Business Parks [in Iskandar Malaysia in Johor] continue to power ahead, with sales of nearly RM1 billion achieved in ten months, representing 132.4% of FY2022 full-year sales and making up close to one-third of the group’s total sales to-date in FY2023,” said Eco World president and chief executive officer Datuk Chang Khim Wah in a statement.

“We believe this strong momentum will continue based on the sustained interest we have been receiving from both local and international industrialists,” he added.

Meanwhile, the proposed acquisition of the 403.78-acre land in Kulai, Iskandar Malaysia, will present an opportunity for the group to develop its fifth business park, to be known as Eco Business Park VI.

“This acquisition, which is expected to be completed in early 2024, will increase the group’s total industrial landbank to 2,416 acres and provide an estimated additional gross development value of RM1.58 billion," it said.

Shares in Eco World, which has appreciated by 74.6% since the beginning of the year, closed one sen or 0.92% higher to RM1.10 on Thursday, giving the group a market capitalisation of RM3.24 billion.