KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) has recorded RM2.18 billion in sales during the first seven months of the financial year 2024 (FY24), putting it on course to meet its sales target of RM3.5 billion.
Public Investment Bank Bhd (PublicInvest) said this represents 62 per cent of its FY24 sales target of RM3.5 billion, driven mainly by Iskandar Malaysia projects (RM1.33 billion sales achieved, or 61 per cent of total year-to-date sales).
"Correspondingly, EcoWorld Malaysia's unbilled sales rose to RM4.03 billion from RM3.88 billion a quarter ago," it said.
EcoWorld Malaysia registered a second quarter (Q2) FY24 net profit of RM70.0 million, which is within PublicInvest and consensus full year estimates.
"Year to date, the company's net profit of RM139.7 million constituted about 49.6 per cent and 50.6 per cent of our and consensus estimates," the firm said.
Separately, PublicInvest said Eco World International Berhad (EWI) recorded a loss before tax of RM13.9 million in Q2 FY24 (vs. Q3 FY23 loss before tax of RM2.1 million).
It said this is mainly due to lower gross profit as the stocks in the Australian projects are mostly fully sold, an impairment loss on the amount owed by EcoWorld London as the joint venture continues to invest resources to procure better planning.
consents for its remaining projects and lowers foreign exchange gains.
"All told, we keep our estimates and target price of RM1.50 unchanged. Maintain neutral," it added.