KUALA LUMPUR (Sept 27): Eco World Development Group Bhd's (EcoWorld) earnings for the third quarter of its 2016 financial year (3QFY16) was almost five times higher at RM44.58 million, compared with the RM9.39 million it recorded a year ago.

Its quarterly results filing for 3QFY16 ended July 31, 2016 attributed the improved earnings to higher sales from launched projects during the quarter.

Revenue for the period gained almost 60% year-on-year (y-o-y) to RM727.34 million from RM454.28 million due to the same reason.

In the nine months ended July 31 (9MFY16), net profit was about four times higher y-o-y at RM99.93 million, compared with the RM24.26 million it netted in 9MFY15, while cumulative revenue rose 76% to RM1.81 billion from RM1.03 billion.

According to EcoWorld, the projects that drove its quarterly earnings included 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.

As at July 31, EcoWorld's unbilled progress billings stood at RM4 billion, which it said will continue to sustain its revenue and earnings momentum going forward.

Sales-wise, it achieved RM2.202 billion as at Aug 31, of which RM1.194 billion came from its projects in the Klang Valley, with RM935 million from Iskandar Malaysia, Johor, and RM73 million from Penang.

In a statement, EcoWorld president and chief executive officer Datuk Chang Khim Wah said the group expects to see sales pick up strongly in the group's fourth quarter, following the concurrent launch of four projects on Sept 25 under "EcoWorld's Firsts campaign".

The projects launched were Eco Grandeur and Eco Ardence in the Klang Valley, Eco Bloom @ Eco Meadows in Penang, and Eco Business Park II in Iskandar Malaysia.

"The cumulative total value of products launched as part of the campaign was approximately RM1 billion," he said.

He added the indicative overall take-up achieved, based on total units made available for sale, is approximately 81%, with over 1,000 units snapped up on launch date across the four projects.

On the proposed listing of Eco World International Bhd (EWI), Chang said discussions between EcoWorld, Tan Sri Liew Kee Sin, and a property development group to co-anchor EWI's proposed initial public offering (IPO) as strategic investors are targeted to be concluded soon.

Thereafter, he said EcoWorld will proceed to seek the approval of shareholders for the proposed subscription for up to 30% of EWI's enlarged share capital pursuant to the proposed IPO.

On EcoWorld's FY16 full year sales target of RM4 billion, Chang said it was set based on expected sales from projects under the EcoWorld brand name.

"In respect of Bukit Bintang City Centre (BBCC) and EWI, the group's proportionate share of sales from its 40% stake in BBCC and proposed stake of up to 30% in EWI are included in the target," he explained.

Chang said the group is on track to achieve this sales target based on the high level of locked-in sales achieved up to Aug 31, continued contributions from its 11 ongoing projects, the overwhelming response received on the launch of the four new projects under the EcoWorld's Firsts Campaign, and the upcoming launch of BBCC by year end.

Shares in EcoWorld closed unchanged at RM1.28, for a market value of RM3.03 billion.