KUALA LUMPUR (May 28): Eco World Development Group Bhd is still confident in achieving its sales target of RM3 billion for its financial year ending October 31, 2015 (FY15), and its target of RM4 billion in FY16.

Chief executive officer Datuk Chang Khim Wah said Eco World’s (fundamental: 0.5; valuation: 0) sales will be driven by launches of new and ongoing projects, as its developments are focused in areas with existing catchment.

“We have given the sales target of RM3 billion, and we are very optimistic [about meeting] that, it’s not an issue. And next year we have a target of RM4 billion.

“We were lucky to have bought our land banks two years ago. When we bought the land banks, they were all located very close to highways and trunk roads. Each and every project already has catchment nearby,” said Chang.

He highlighted that Eco World’s Eco Sky project at Jalan Ipoh, Kuala Lumpur, for example, is in the vicinity of a KTM station and a Tesco supermarket, while its Eco Sanctuary project will benefit from nearby catchment areas such as Kota Kemuning, Subang Jaya and Puchong.

“Every development that we have picked has all these characteristics, and we are not in any greenfield projects,” said Chang.

Chang was speaking to the media today following the opening of Eco World’s third sales gallery in the Klang Valley, for its 308.7-acre Eco Sanctuary development in Canal City, located south of Kota Kemuning.

Eco Sanctuary has a total gross development value (GDV) of RM8 billion, with Phase 1 of the development, comprising the Monterey and Terraza residential sections of the project, accounting for RM1 billion out of the total GDV.

The project is slated for launching next month, with Phase 1 to be completed around the first quarter of 2018.

At 12.30pm, Eco World fell 1 sen or 0.62% to RM1.60, bringing its market capitalisation to RM3.81 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)