KUALA LUMPUR, Sept 21 — Eco World Development Group Bhd’s net profit for the third quarter ended July 31, 2023 (3Q2023) rose 43 per cent to RM66.34 million from RM46.39 million in the same quarter last year.

Revenue increased 7.4 per cent to RM476.85 million from RM443.97 million a year ago.

In a filing with Bursa Malaysia today, the property developer said it is on track to achieve its financial year (FY) 2023 full-year sales target of RM3.5 billion with RM3.06 billion sales recorded in 10 months, representing 87.4 per cent of the target.

It said steady sales progress has provided the company with future revenue of RM4.22 billion as at August 31, 2023, thus maintaining clear near to mid-term earnings and cashflow visibility.

President and chief executive officer Datuk Chang Khim Wah said the company continued to enjoy sustained demand for products across all market segments with strong sales achieved in 10 months.

He said Eco Business Parks (EBPs) segment achieved a record-breaking RM997 million sales in 10 months, representing 132.4 per cent of FY2022 full-year industrial sales and almost one-third of the company’s year-to-date sales.

"We believe this strong momentum will continue based on the sustained interest we have been receiving from both local and international industrialists.

"In this regard, we are looking forward to being able to serve a larger segment of our growing Malaysian and multinational industrial customer base through our newly acquired 163.40 hectares (ha) of land in Kulai,” he said.

He said the latest acquisition increased the company’s total industrial landbank to 977.72 ha.

"We are planning to develop it into EBP VI with an estimated gross development value of RM1.58 billion,” he said.

For the commercial segment, he said it also outperformed with RM432 million sales secured in 10 months, representing 97 per cent of FY2022 full-year commercial sales while the residential properties segment also recorded steady sales which had exceeded RM1.63 billion as at August 31, 2023.

Meanwhile, he said Eco World International Bhd (EWI) has declared a dividend of RM792 million payable on September 29, 2023, of which EcoWorld Malaysia’s share is RM214 million.

He said in regards to future dividends, EWI is targeting to declare a second tranche dividend of RM144 million from its excess cash in December 2023 with potentially more to come in FY2024.

"Based on our 27 per cent stake in EWI, EcoWorld Malaysia’s share of the second tranche dividend will be RM38.88 million,” he said.

He said these dividends from EWI would further strengthen EcoWorld Malaysia’s future cash and net gearing positions upon receipt.

"Accordingly, we are well-positioned to be able to continue rewarding our shareholders with dividends whilst also pursuing good opportunities to acquire more landbank that will enhance EcoWorld Malaysia’s future growth prospects,” he added. — Bernama