Eco World International Bhd president & CEO Datuk Teow Leong Seng
KUALA LUMPUR: Eco World International Bhd (EcoWorld International) achieved sales of RM685mil in the first quarter ended Jan 31, 2022, 68% higher than the sales recorded in the same period a year ago.
The developer also has a strong reservation pipeline of RM393mil - total sales including reserves as at Feb 28 adds up to a total of RM1.077bil.
It said Embassy Gardens and London City Island were the biggest contributors to sales, generating
RM240mil and RM229mil sales respectively based on contracts exchanged.
“EcoWorld International had a good start to FY22 as the attractive incentive packages being offered to customers led to a resurgence in buying interest, particularly for our London City Island and Embassy Gardens projects.
“Local demand in Australia has also been recovering steadily which contributed to the RM685mil sales secured in the first four months of this financial year,” president and CEO Datuk Teow Leong Seng said in the statement.
In the first quarter to Jan 31, 2022, EcoWorld International posted a net loss of RM14.66mil on revenue of RM49.24mil.
The gross and net gearing levels of the group remain low at 0.29 times and 0.21 times respectively as borrowings have been significantly pared down following the completion of major projects in London, Sydney and Melbourne, it said.
Teow said its projects in Australia are fully completed and its major projects in London under the EcoWorld-Ballymore joint venture are very close to achieving full completion.
“The impact of an inflationary environment could therefore favour us as our selling prices stand to benefit from rising property prices while our costs on the completed and near-completed projects are largely shielded from inflationary pressure,” he said.
“We do however acknowledge the uncertain market environment caused by rising geopolitical tensions – against such a backdrop the strategic decision we made at the end of 2021 to accelerate cash recoupment via the sale of our completed units, remains very sound,” Teow said.
He added that it continued to see good interest from investors, both institutional and retail, for its projects in both the UK and Australia.
“This includes several large offers which we are currently assessing. Should we decide to proceed with these offers, our plans to repatriate the capital which we have invested in our completed projects could be accelerated,” he said.
Teow said that it remained the Board’s intention to sell the remaining units in the EcoWorld-Ballymore and Australian projects in the next two to three years with a key goal of making further distributions to shareholders after setting aside a portion of the capital recouped from these completed projects to be reinvested for future growth.
The border lockdown in HK and China will affect near term sales. that's all. but the sanction on Russia seems to raise a lot of unrest within the China super rich class. Few friends from China is asking me about immigrating, lets wait and see what shall happen when their cases fall.
AGM takeaway: Target for FY22 2B sales subsidiary and JV will bring in few hundred million cash flow this year. Eyeing BTR and bulk purchase potential To grow Management services for Recurring income in Progress project not much affected by material cost spike as most are in end of completion stage Management is actively sell leftover to get the cash back (hence the low margin in recent quarters)
In summary, the management is doing a good job, though I dont like their dividend policy over share buy back. maybe the tycoons invested prefers cash instead of share price growth.
But with share price way below NTA, and expected good cash flow, gearing ratio going down, share buy back works better for long term shareholder value.
This counter is really disappointing... many committed at >rm1, and ended stuck here for years..the earlier the investor come in, the biggest losses ...and still no sight in the shares going back to its IPO price...
Supposed to be a good company but suffered many blows including Brexit, Covid and now the UK's looming recession and persistently double-digit inflation. The Company has a good vision and business model but somehow the management team is not able to capitalise swiftly. Even the planned repatriation now suffers a bit blow with pound now at its weakest against USD since 1985. A bit disappointed with its management team ability to swiftly and agile manner to manage the risks in the business
For its to recover its IPO value is highly unlikely as the management is too laid-back and not competence enough to ride the Group out of its crises. But at least it doesn't need to bear the elevated construction costs for its projects as most of them already at the tail-end. Now is about cash preservation and distribution back to the shareholders which is much higher than its current share price
Revenue is only recognised for its Australian's entities as they are wholly-owned. As for the UK's entities, EWINT captures as share of profits from its JV entities. The sales of RM2b for 9-month including reserves and will not be captured as revenue till the projects have been handover
Is very undervalued based on potential distribution to the shareholders in 1-2 years but many projects in the UK and Aus for the last years at its best were breakeven or thin margins after adjusting for holding cost s. They need to be selective on the projects on looming recession, high interest rates from 0.25-1.75%, high building material costs and tapering demand. The irony is somehow their Malaysian sister company actually have much better margins than Ewint. Is time for Ewint to restrategise to concentrate on SEA market as the UK and Australia markets have proved too competitive and complicated for the management team to handle
Warchest is right, all the shareholders holding the counter lose money since it's ipo, the top shareholders need to consider change the management teams or implement new strategies to strengthen the company to compete in much challenging environment ahead, at the same time, to protect the good image of Ecoworld.
Any questions and concerns about its business, financials and even issues, please address to its Investor Relations at firstname.lastname@example.org
Is already more than 5 years since its IPO, all the projects at the tail-end but somehow the management team of EWINT is not capable of delivery value and returns for the RM2.4b capital invested by the shareholders. Somehow the projects delivered are vanity in nature but not profitable
Looking at AR 2020 vs 2021, top 30 substantial shareholders has minor changes, most of them still holding the share till today. I think they are not foolish investors but trust in some extent of their money n investing. From IPO listed till now, capital earning accumulated with substantial land bank for future development, I guess this is not easy but pretty good management n jobs. If a company management doesn't keen on shareholders interest, they wouldn't keep on preparing for promises on cash distribution but will be reserved n reserved. It will create value of share or money back to shareholders. Those hold at low price should be pretty appreciated for former shareholders to give up share to u...
This is my little feeling... I will start buy now..
Like what I calculated net net cash should be 80 cents once the JV entities repaid the amounts owing. 50% distribution and remaining for landbank acquisition, we can still expect a dividends of 40 cents, well above the current share price and we still own the company. Actually payment of dividends is bad for growth companies as less money invested to compound growth. But so far not in the case of EWINT. So far landbank mostly exhausted as most of the projects at tail-end. However, the issue is with this company is whether is outright sales or BTR project, its projects only have thin margins after taking into account holding costs and extra incentives. It cause doubt either the industry itself is too competitive for the management to handle or they are having issue in cost control. That's why the silver lining now for redistribution of dividends and why is taking 1-2 years as the pound now is weakening badly against RM, so is not a wise decision
As the Company is entering into 2nd phase and replenishment of its landbank, it would be better that the Company restrategise its business. Of course they have track record but now they need to figure on how to make money for the shareholders as RM2.4b of equity has been invested since 2017
Market no longer reacting to its sales targets and sales + reserves secured. RM2b, RM2.2b as these do not necessarily translate into profitability. Something that management need to focus is not only be a strong resources allocator but finding ways to expand its margins
Excellent opinion n sharing on above. On biz view, capital regroup n less debt is wise strategy for next move. Expected tough biz environment n recession storm is coming n happening in all Western developed countries especially in UK. If ewint able to regroup over RM 2b capital with partial landbank for future development, it consider marvellous achievement vs other local property counters. Based on their rich experience past few years in UK especially， I still hold belief on their capabilities to look for new venture. Actually as founder point of views, I think they should have some intention or proposal in mind for company prospect.... Delisted could be one of the option hopefully n payback capital to IPO shareholders.. Then at current price of RM 0.30, or even lower, could be the golden period for new comer or old bird investors... Certainly assuming the management can fulfill their promise on coming period of handsome distribution first.
it seems to me that, the mos benefited parties here are the Directors and CEO for this EWINT, who enjoy all types of remunerations, the biggest losers are the shareholders, who invested the hard-earned money, beleiving in this ewint story and dream, and let the incompetent CEOs/managers/director here to roll the biz using our investment...
we prefer to wrap it up, get back the borrowing money from JVs, and distribute to investors, rather than letting the incompetent CEO/directors/manegers to continue riding on their fat fat remuneration and no performance deliver.
And most surprising, the cuco land owner-Kuok Family also suffer this big, not sure what share price they subscrbe, not sure if they still hold big, not sure any other things...but if they are still in here, they shoud do something, as biggest share holder, at least kick out the CEO/directors...or propose to wrap up the biz, distribute back the cash etc to shareholders...
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by drkelvin20 > 2022-02-11 15:49 | Report Abuse
why the share prices are staying at this low for long enough?