KUALA LUMPUR (March 16): Eco World Development Group Bhd (EcoWorld) bagged RM116.17 million in net profit for its financial quarter ended 31 Jan, 2017 (1QFY17), against RM20.67 million last year, lifted by RM94.8 million gained from its change of interest in Paragon Pinnacle Sdn Bhd last December.

“Excluding the gain on dilution of equity interest in Paragon Pinnacle, profit after tax (PAT) for the current financial period was RM21.4 million, which is 3.38% higher than the RM20.7 million reported in 1QFY16,” the group said in a filing.

For 1QFY17, the property developer registered 27.87% increase in revenue to RM592.71 million, from RM463.51 million in the same period last year.

Excluding the one-off gain from Paragon, EcoWorld’s quarter-on-quarter profit was down 27.21%, from RM29.4 million recorded in 4QFY16, while revenue was also 20.01% lower from RM741 million in the same period.

“This is consistent with the slower progress of works typically experienced during the year-end festive season and in the lead-up to the Chinese New Year, which both occurred during 1QFY17,” the group said.

On Dec 9 last year, EcoWorld’s shareholders gave the nod for the RM367 million provision by Employers Provident Fund (EPF) to Paragon Pinnacle, which also entailed EPF to take 40% interest in Paragon via issuance of new shares.

The provision, to be repaid in eight years, is partly used to fund Paragon’s development of Eco Grandeur and Eco Business Park V in Bandar Puncak Alam, Selangor, EcoWorld said in December.

“Ongoing projects which contributed to the revenue and gross profit achieved,include Eco Majestic, Eco Sanctuary and Eco Sky in the Klang Valley;Eco Botanic, Eco Spring, Eco Summer and Eco Business Park 1, Eco Tropics and Eco Business Park III in Iskandar Malaysia; as well as Eco Meadows and Eco Terraces in Penang,” it added.

Looking forward, EcoWorld said it is on track to achieve its sales target of RM4 billion in FY17.

Ecoworld’s shares closed higher on Thursday, having gained 1.34% or 2 sen to close at RM1.51, valuing the company at RM4.48 billion.