Page 14 - Malaysia Builders Directory 2019/2020
P. 14

                 Editorial
well, along with its GEM Residences in Singapore, which are almost fully sold and made significant contributions to its earnings.
For the first half of its financial year, net profit declined 19% to RM345.18 million from RM427.72 million in the corresponding period a year earlier, despite revenue climbing 15% to RM2.03 billion from RM1.77 billion. Going forward, the group said its performance for the year will be driven by overseas property sales in Vietnam and Singapore, the continued progress of MRT Line 2 and steady earnings contribution from the expressway division.
For its property division, the group said construction works for Anchorvale Crescent, its new project in Singapore, is expected to commence in mid-2019. The group said its overseas projects in Vietnam, Singapore and Australia now represent two thirds of its total property sales. In Malaysia, the group will be launching more landed and high-rise residential components within the next six months. For the expressway division, it said traffic volumes have been stable and resilient and that the group is currently in talks with the Government in relation to the proposed acquisition of all four tolled expressways under Gamuda.
Gamuda recently bagged a contract worth NT$3.95 billion (RM521.75 million) from Taiwan’s state-owned energy company, CPC Corp, to construct a marine bridge and related works in Taiwan. The contract was awarded to both the group and a Taiwanese construction company, Dong-Pi Construction Co Ltd, and will be undertaken via an unincorporated joint venture company in which Gamuda will hold a 70% stake and Dong-Pi will have 30%. The new job involves the construction of a 1.23-km marine bridge connecting a receiving terminal to a man-made island, a 284m long road embankment and includes soil investigation, foundation, a temporary bridge and a working platform, together with environmental protection works. The contract commenced April this year and is expected to be completed by November 2022. It is expected to contribute positively to the revenue and earnings of the group for FY19.
Eco World Development Group Bhd’s (EcoWorld) net profit for the first quarter ended January 31, 2019 (1QFY19) came in three times higher at RM30.32 million, compared with the RM9.77 million it recorded a year ago, thanks to higher share of profit from its joint ventures. Revenue came in at RM491.23 million during the quarter, 5.4% lower than RM519.22 million in the previous corresponding quarter. Notably, its share of profit from joint ventures, both locally and abroad, came in at RM24.02 million, versus a share of loss of about RM3 million in the year-ago quarter.
Main projects that contributed to its revenue and profitability in 1QFY19 were 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 and Eco Terraces in Penang. Revenue recorded by the Group’s Malaysian joint ventures, namely Eco Grandeur, Eco Horizon, Eco Ardence and Bukit Bintang City Centre (BBCC), totalled RM296 million, of which the group’s effective share (unconsolidated) amounted to RM154 million. The international joint venture Eco World International Bhd (EWI) continued to record profit in 1QFY19, following the commencement of delivery of completed units at London City Island and Embassy Gardens in 4QFY18. This enabled the group to record RM6.1 million as its share of EWI’s profit in 1QFY19, as compared to a share of loss of RM2.7 million in 1QFY18.
EcoWorld and EWI are keeping to its target of achieving RM6 billion sales each or a combined of RM12 billion over the two financial years of FY19 and FY20, despite a slow start to FY19. The group is optimistic that the recently launched Home Ownership Programme with EcoWorld (HOPE) campaign together with EcoWorld Help2Own financing package will provide support for property sales.
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