KUCHING: Eco World Development Group Bhd (Eco World) is on track to achieve RM3 billion worth of property sales in financial year 2015 (FY15).
Analysts are optimistic that the property developer will be able to achieve its sales target in FY15 supported by strong unbilled sales amounted to RM3.1 billion and sales from new property launches.
AllianceDBS Research Sdn Bhd (AllianceDBS Research) yesterday said Eco World will be launching four new projects in FY15.
Those projects amongst others include a luxurious eco-themed mixed development project known as EcoSanctuary which is located south of Kota Kemuning in Shah Alam, Selangor with a gross development value (GDV) of RM8 billion, a residential enclave named EcoTropics at Iskandar Malaysia, Johor with GDV of RM3.4 billion, Eco Business Park 3 at Iskandar Malaysia with GDV of RM2 billion and a mixed residential development called EcoTerraces located at the Paya Terubong district in Penang with GDV of RM340 million.
AllianceDBS Research analyst Quah He Wei said, “We believe it is on track to achieve RM3 billion sales target this year given its focus on lifestyle township development, where the initial registrations for its upcoming launches have received overwhelming response.
“With the completion of the acquisition of development rights, Eco World currently owns 4,950 acres of land bank worth RM55 billion GDV which are strategically located in property hotspots in the Klang Valley, Penang and Johor,” Quah said in a report.
Meanwhile, Eco World which announced its first quarter financial year 2015 (1QFY15) results on March 19 said it posted a net profit of RM3.1 million on the back of RM158.03 million of turnover.
AllianceDBS Research observed that the revenue was contributed by its mixed development project, EcoMajestic in the Klang Valley, an integrated commercial including high-rise condominium and retail units called EcoSky in Jalan Ipoh, Kuala Lumpur, a mixed development, Eco Botanic at Iskandar Malaysia and an industrial development, Eco Business Park 1 at Tebrau, Johor.
Additionally, the research firm noted Eco World achieved RM621 million sales as at February 2015 of which 53 per cent came from Iskandar Malaysia.
AllianceDBS Research believes that the strong sales performance has proved market confidence towards Eco World’s products, noting that the company’s properties will continue to be well-received despite the challenging property market at Iskandar Malaysia.
Furthermore, the research arm of CIMB Investment Bank Bhd (CIMB Research) in a recent report said the company’s property sales is expected to pick up in the upcoming quarters of FY15 contributed by new property projects launches.
Concurring with CIMB Research is the research division of Maybank Investment Bank Bhd (Maybank IB Research) which noted that earnings of Eco World is also expected to rise strongly in the coming quarters on full profit recognition from the projects held under Eco World Sdn Bhd previously following a corporate restructuring exercise which was completed recently.