Latest news with #EcoWorldMalaysia
The Star
3 days ago
- Business
- The Star
Property market outlook in 2H supported by OPR cut
PETALING JAYA: The local property sector is expected to regain momentum in the second half of 2025 (2H25) driven by falling interest rates, resilient mass-market demand and foreign direct investment-led activity in industrial and transit-oriented developments, says UOB Kay Hian (UOBKH) Research. In a recent note, the research house maintained an 'overweight' rating on the sector, projecting a 10.3% year-on-year (y-o-y) growth in revenue and 7.4% earnings growth in 2025. It said the 25-basis-point cut in the overnight policy rate (OPR) would support the earnings outlook. UOBKH Research estimated that the rate cut could lift developers' 2026 earnings modestly, with S P Setia Bhd potentially gaining 2%, Sunway Bhd by 1% and Eco World Development Group Bhd (EcoWorld Malaysia) by 0.5%, based on their respective floating-rate debt exposure of 40% to 60%. Monthly repayments for floating-rate mortgages could also drop by 3.4% based on a RM500,000 loan, enhancing buyer affordability. It noted that developers were also ramping up launches in Johor, particularly around the Bukit Chagar rapid transit system station location, with upcoming projects including Sunway's Soho units in Sunway Majestic and Mah Sing Group Bhd 's M Grand Minori. 'Overall, the increase in 2H25 launches should be well absorbed by a robust and less-speculative demand, supported by a tangible infrastructure progress enhancing cross-border connectivity, and a growing industrial activity backed by the Singapore and Johor governments under the Johor-Singapore Special Economic Zone or JS-SEZ,' said UOBKH Research. The mass-market housing segment remains resilient, with developers like Mah Sing, Matrix Concepts Holdings Bhd, Lagenda Properties Bhd and EcoWorld Malaysia offering homes priced below RM700,000. UOBKH Research noted that this segment benefits from structural drivers such as first-time homebuyers and minimum wage hikes. On the industrial front, the research house sees continued demand for land in Johor despite delays in some data centre transactions. It expects IOI Properties Bhd to conclude a 300-acre sale in Kulai by the third quarter, adding that 'we see a pocket of opportunities in the sector, especially among companies exposed to the Iskandar 2.0 theme'.
The Star
07-07-2025
- Business
- The Star
Property sector earnings visibility set to improve
Affin Hwang Investment Bank Bhd said it will maintain an 'overweight' stance on the sector. PETALING JAYA: Malaysia's property market is expected to experience a reacceleration in the second half of 2025, says Affin Hwang Investment Bank Bhd. In a report, it said it will maintain an 'overweight' stance on the sector as earnings visibility is set to improve as developers ramp up billings from deferred launches and back-loaded execution. 'While the revised sales and service tax (SST) framework introduces incremental cost pressure, 6% to 8%, our analysis suggests that margin drag remains manageable,' it noted. SST absorption could weigh incrementally on margins for developers with larger exposure to industrial, data centre, or non- Housing Development Act mixed-use products. 'Developers typically pass on SST-related costs via higher selling prices, though weaker markets like offices may see partial absorption to sustain take-up. 'However, we think demand in the industrial and commercial segment should remain strong and enhance pass-through ability, reducing the likelihood of any meaningful margin erosion,' the report said. But it is worth noting that serviced apartments built on commercial land but intended for residential use will be exempted from the 6% SST on construction services. The research house explained the sector is shifting its focus toward industrial monetisation and lease-based recurring income, with developers like Sime Darby Property Bhd (SimeProp) and Eco World Group Development Bhd (EcoWorld Malaysia) benefiting from strong traction in data centre (DC) and custom built facilities) deals. It also said UOA Development Bhd (UOAD) is gaining momentum, supported by healthy sales at well-located projects such as Bamboo Hills. 'We favour developers with active land banking strategies, strong DC land sales, and rising leasing income. 'SimeProp (industrial projects comprise 35% of remaining gross development value) and EcoWorld Malaysia (33%) stand out for their execution consistency and leasing strength,' it noted. Furthermore, the research house said the sector's current share price discount to revalued net asset value is at 41%, nearly a standard deviation below its five-year average. Affin Hwang Investment noted it sees a potential re-rating as the Johor-Singapore Special Economic Zone remains a standout catalyst. A catalyst would be Exsim Group's Causewayz @ Lumba Kuda that achieved full take-up within an hour for phase one. 'EcoWorld Malaysia and SimeProp are best positioned to leverage industrial and data centre demand given strong land monetisation pipelines. 'UOAD now offers a differentiated angle via its Johor RTS-linked project; with average-selling-prices guided at RM1,000 to RM1,200 per sq ft, pricing could be revised upward amid expectations of stronger-than-expected demand,' Affin Hwang explained. Meanwhile, Affin Hwang said while it has a positive view, key downside risks still exist, and include a rise in property overhang adversely impacting demand and product pricing; and labour shortages and rising building material costs, which will lead to higher operation costs.
The Star
26-06-2025
- Business
- The Star
EcoWorld continues to outperform for FY25
EcoWorld Malaysia said its industrial segment under the Eco Business Parks and Quantum brands continued to perform exceptionally well. PETALING JAYA: Eco World Development Group Bhd (EcoWorld Malaysia) has achieved RM2.99bil in sales in the seven months of its current financial year ending Oct 31, (FY25), representing 85% of its full-year sales target. In a statement, the property developer said projects in Iskandar Malaysia in Johor contributed RM1.67bil or 56% of the group's total sales, followed by 34% from the Klang Valley and 10% from Penang. For its second quarter of financial year ended April 30, (2Q25), EcoWorld Malaysia's net profit surged to RM129.83mil from RM70.05mil in the previous corresponding period, while revenue grew to RM878.20mil from RM555.76mil a year earlier. For the six-month period ended April 30, EcoWorld Malaysia's net profit rose to RM210.18mil from RM139.68mil a year earlier, while revenue grew to RM1.42bil from RM1.09bil a year earlier. EcoWorld Malaysia said its net gearing ratio as of April 30, stood at 0.55 times, underpinned by cash balances, including deposits and short-term funds, of RM1.76bil. The company also declared a second interim dividend of two sen per share in 2Q25, bringing total year-to-date dividends declared to three sen for FY25. EcoWorld Malaysia said its industrial segment under the Eco Business Parks and Quantum brands continued to perform exceptionally well, with combined sales of RM1.20bil secured as of May 31. 'This already exceeds our full year industrial sales of RM1.11bil recorded in FY24, setting a new benchmark in industrial sales for the group.' EcoWorld Malaysia said its robust sales performance has generated a positive spill-over effect on its other key financial metrics. 'Apart from the substantial increase in the group's future revenue to RM5.22bil as of May 31, our cash balances, including deposits and short-term funds, as of April 30, was RM1.76bil, also a record high for the group. 'In addition, we are expecting more than RM1bil in cash inflows from the remaining proceeds of our sales of five large tracts of industrial land secured in FY24 and FY25.' Separately, Eco World International Bhd (EWI), which focuses on developing properties in Britain and Australia, returned to the black after posting a net profit of RM2.28mil for 2Q25, versus a net loss of RM14.13mil in the previous corresponding period. In a filing with Bursa Malaysia, EWI said it recorded a higher share of profits in a joint venture during the quarter as Eco World-Ballymore recorded higher profit as a result of a product mix with a higher profit margin. 'There was no revenue recorded by the group in 2Q25 as all residential units in both projects in Australia – West Village and Yarra One – were fully sold in FY24 with only one commercial unit remaining.' For the six-month period ended April 30, EWI's net loss narrowed to RM1.46mil from a net loss of RM13.95mil a year earlier. The group reported no revenue due to the reason stated above. 'The group is currently assessing the market conditions and feasibility of the remaining sites in Britain and Australia before proceeding with any new launches.'
The Star
26-06-2025
- Business
- The Star
EcoWorld Malaysia registers 7M sales of RM2.99bil
PETALING JAYA: Eco World Development Group Bhd (EcoWorld Malaysia) has achieved RM2.99bil sales in the seven months of its current financial year ending Oct 31, 2025 (FY25), representing 85% of its full year sales target. In a statement, the property developer said projects in Iskandar Malaysia contributed RM1.67bil or 56% of the group's total sales, followed by 34% from the Klang Valley and 10% from Penang. For its second quarter ended April 30, 2025 (2Q25), EcoWorld Malaysia's net profit surged to RM129.83mil from RM70.05mil in the previous corresponding period, while revenue grew to RM878.20mil from RM555.76mil a year earlier. For the six-month period ended April 30, 2025, EcoWorld Malaysia's net profit rose to RM210.18mil from RM139.68mil a year earlier, while revenue grew to RM1.42bil from RM1.09bil a year earlier. EcoWorld Malaysia said net gearing ratio as at 30 April 2025 stands at 0.55 times, underpinned by cash balances (including deposits and short-term funds) of RM1.76bil. The company also declared a second interim dividend of two sen per share in 2Q25, bringing total year-to-date dividends declared to three sen for FY25. EcoWorld Malaysia said its industrial segment under the Eco Business Parks and 'Quantum' pillars continued to perform exceptionally well, with combined sales of RM1.20bil secured as at May 31, 2025. 'This already exceeds our full year industrial sales of RM1.11bil recorded in FY24, setting a new benchmark in industrial sales for the group.' EcoWorld Malaysia said its robust sales performance has generated a positive spill-over effect on its other key financial measures. 'Apart from the substantial increase in the group's future revenue to RM5.22bil as at May 31, 2025, our cash balances (including deposits and short-term funds) as at April 30, 2025 was RM1.76bil, also a record high for the group. 'In addition, we are expecting more than RM1bil cash inflows from the remaining proceeds of our five large-tract industrial land sales secured in FY24 and FY25.' Separately, Eco World International Bhd (EWI), which focuses on developing properties in the United Kingdom and Australia, returned to the black after posting a net profit of RM2.28mil for its second quarter ended April 30, 2025 (2Q25), versus a net loss of RM14.13mil in the previous corresponding period. In a filing with Bursa Malaysia, EWI said it recorded a higher share of profits in a joint venture during the quarter as Eco World-Ballymore recorded higher profit as a result of a product mix with higher profit margin. 'There was no revenue recorded by the group in 2Q25 as all residential units in both projects in Australia, namely West Village and Yarra One were fully sold in the financial year 2024 with only one commercial unit remaining.' For the six-month period ended April 30, 2025, EWI's net loss narrowed to RM1.46mil from a net loss of RM13.95mil a year earlier. The group reported no revenue due to the same reason stated above. 'The group is currently assessing the market conditions and feasibility of the remaining sites in the UK and Australia before proceeding with any new launches.'
New Straits Times
26-06-2025
- Business
- New Straits Times
EcoWorld Q2 earnings jump 85pct to RM123mil on land sale
KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) posted a net profit of RM129.8 million for the second quarter ended April 30, 2025, up 85.3 per cent from RM70 million a year ago, driven by higher revenue from a major land sale. EcoWorld Malaysia's revenue rose 52 per cent to RM878.2 million from RM555.8 million in the same quarter last year. The increase was mainly driven by the full consolidation of Paragon Pinnacle's results and the substantial recognition of revenue from the sale of 123 acres of industrial land to Microsoft Payments (Malaysia) Sdn Bhd. For the quarter, EcoWorld Malaysia declared a second interim dividend of two sen per share, bringing the total dividends declared for the year to date (YTD) to three sen per share. President and chief executive officer Datuk Chang Khim Wah said EcoWorld Malaysia is on course to surpass its RM3.5 billion sales target for the financial year 2025 (FY25). He noted that within the first seven months of FY25, the group has already secured RM2.99 billion in sales, amounting to 85 per cent of its full-year target. "The YTD sales in FY25 is also 37 per cent higher than what we achieved in the same period of financial year 2024. "This has enabled the group to chart an all-time high in our future revenue position which stands at RM5.22 billion as at May 31, 2025," he said. Chang said the company continues to observe steady demand from local manufacturers for its ready-built factories and smaller industrial land plots within its business parks in Iskandar Malaysia and the Klang Valley. He added that in 2Q25, EcoWorld Malaysia finalised a strategic partnership with SD Guthrie Berhad and NS Corporation to jointly develop 483.5 hectares of land in Bukit Pelandok, Negeri Sembilan.
