On the right track: (from left) Eco World executive director Liew Tian Xiong, Chang and executive director and chief financial officer Datuk Heah Kok Boon sharing a light moment at the AGM
SEMENYIH: Property developer Eco World Development Group Bhd is confident of hitting its sales target of RM4bil this year after securing more than RM900mil in the first four months of the company’s current financial year ending Oct 31, 2017.
President and chief executive officer Datuk Chang Khim Wah said sales this year would be driven by 15 of the company’s ongoing projects, as well as several new ones planned for launch in the second half of this year.
The company plans to launch Eco Forest and Eco Business Park V in the Klang Valley, as well as Eco Sun and Eco Horizon in Penang.
“We plan to launch the projects either in the third or fourth quarter of this year,” Chang told reporters after the company’s AGM here.
“Going forward, we’re confident of meeting our sales target for 2017,” said Chang.
Eco World’s net profit surged 461% to RM116.17mil in the first quarter ended Jan 31, 2017 compared with RM20.67mil in the same period last year, due to a gain on dilution of its equity interest in Paragon Pinnacle, a unit of the company.
The developer saw revenue for the quarter jumping to RM592.71mil against RM463.51mil previously.
Eco World said the percentage increase in net profit was significantly higher than the percentage increase in revenue mainly due to the inclusion of a gain of RM94.8mil which arose from the application of FRS 10 – consolidated financial statements to recognise the impact of the change in the company’s interest in Paragon Pinnacle from a 100% subsidiary to a 60% joint venture.
This took place following the subscription by the Employees Provident Fund of 40% of Paragon Pinnacle’s enlarged share capital pursuant to the terms of the subscription and shareholders’ agreement between the parties.
Eco World said in the case of Paragon Pinnacle, the successful launch of Eco Grandeur, the development activities and other work performed since the acquisition of the land in Ijok had substantially enhanced the fair value of its underlying assets.
Accordingly, the value of the company’s retained 60% equity interest in Paragon Pinnacle has increased, resulting in the gain being recorded on the day the dilution took place.
For the first four months of the current financial year, the company secured RM955mil in sales, which was 57% higher than the RM607.8mil achieved in the first four months of 2016.
A total of RM797mil was contributed by projects in the Klang Valley, while the remaining RM158mil was from projects in Johor and Penang.
Chang said Eco World’s landbank stood at 8,000 acres, with 55% in the Klang Valley. The company has remaining landbank in Iskandar Malaysia, Johor and Penang.
“About 2,500 acres have already been developed,” he said.
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