KUALA LUMPUR (Dec 12): Eco World Development Group Bhd (EcoWorld) and its 27%-owned associate and international arm Eco World International Bhd (EWI) reported strong results for their respective fourth quarter of financial year 2019 (4QFY19) today.

For the full financial year 2019 (FY19), EcoWorld saw a net profit of RM203.4 million while EWI's net profit was RM190.3 million.

In a statement today, EcoWorld said its revenue and gross profit in 4QFY19 grew by 96% and 57% respectively, compared to 4QFY18.

It said this is due to higher percentage of completion and higher sales secured by ongoing projects of the group's subsidiaries, such as Eco Majestic, Eco Forest, Eco Sanctuary and Eco Sky in the Klang Valley, Eco Botanic, Eco Spring, Eco Summer, Eco Business Park I, Eco Business Park II, Eco Tropics and Eco Business Park III in Iskandar Malaysia and Eco Meadows in Penang.

EcoWorld said its share of the results of its Malaysian joint ventures (JVs) increased by 355% in 4QFY19 compared to 4QFY18 due to stronger sales as well as greater progress of works achieved by Eco Grandeur, Eco Business Park V, Eco Horizon, Eco Ardence and Bukit Bintang City Centre.

It also said the shareholder's funds now stands at RM4.538 billion with net asset per share having increased steadily from RM1.47 for FY18 to RM1.54 for FY19.

"EcoWorld's effective stake in the future revenue of its subsidiaries and JVs as at Oct 31, 2019 remains high at RM5.16 billion, which gives good earnings visibility," it said.

Commenting on EWI's earnings, the group said this strong performance is due to higher recognition of revenue and profit by its JV projects in the United Kingdom (UK) following completion and commencement of handover of open market sale units sold to customers as well as revenue and profit recognition of EcoWorld London's Built-to-Rent sales.

In a separate statement, EWI said its JVs recorded total revenue of RM3.76 billion during the year, of which the group's effective share (unconsolidated) amounted to RM2.66 billion.

The group said its effective stake in the future revenue of its subsidiaries and JVs as at Oct 31, 2019 also remains high at RM5 billion, with excellent near-term earnings visibility from sizeable handover of properties in both UK and Australia.

It said the strong performance achieved in FY19 will help sustain earnings growth momentum and contribute towards both companies' aim to be in a position to declare their first dividend in FY20.

EcoWorld president and chief executive officer (CEO) Datuk Chang Khim Wah said it was a very encouraging trend which sets the developer on a good path towards achieving the RM6 billion combined two-year sales target set for FY19 and FY20.

Meanwhile, EWI president and CEO Datuk Teow Leong Seng said the group crossed another major milestone this year when it handed over the 1,000th private residential unit to its purchaser.

"The timely completion of Block A05 of Embassy Gardens (EG) and Block E of London City Island (LCI) in the fourth quarter of FY19 enabled us to record more than RM100 million increase in PAT (profit after tax) as compared to the same period last year. This contributed strongly to the RM190.3 million PAT we were able to achieve for the full FY19," said Teow.

As at Oct 31, 2019, the group has five projects that have commenced handover (LCI, EG, Kensal Rise, Millbrook Park and Aberfeldy Village), and keys to 1,141 residential units have been delivered to its purchasers.

"Based on the improving market outlook, we are maintaining our combined two-year sales target of RM6 billion earlier announced for FY19 and FY20.

"Apart from riding on the recovery of the general London, Sydney and Melbourne markets to secure more open market sales, we will continue to pursue sizeable Build-to-Rent deals in the UK to achieve the sales target," he added.

EcoWorld chairman Tan Sri Liew Kee Sin said the outstanding results announced by both EcoWorld and EWI speak volumes about the strength of the EcoWorld brand and the customer following the group has been able to garner not just in Malaysia but also in the UK and Australia.

"On a combined basis, EcoWorld and EWI's effective share of future revenue from locked-in sales as at Oct 31, 2019 is RM8.8 billion and to date we have handed over more than 17,500 properties to our customers in Malaysia and the United Kingdom after only six years in operation," Liew said.

"That these remarkable outcomes have been achieved amidst the most turbulent times for the property sector in every market we operate in is a strong testament to the creativity, resilience and agility of Team EcoWorld.

"I am confident that our team's tenacity and never-say-die attitude will continue to power us on to overcome every challenge and make the most of every opportunity in the years ahead," he said.

At 2.57pm, EcoWorld shares rose 6.04% or 4.5 sen to 79 sen, valuing it at RM2.33 billion, while EWI's share price fell 0.96% or 1 sen to RM1.03 for a market capitalisation of RM2.47 billion.