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Eco World reported net profit for Q3 is RM35.15 million. Positive or negative?

Eco World Reported Net Profit For Q3

Eco World’s net profit for Q3 is RM35.15 million. Positive or negative?

Property market vitality can only be seen from the results of property developers too. If they start to show losses, that would meant that sales are no longer growing and if their construction has to continue, this would lead to losses in the near term until they sold what they built. By the way there are developers who did not manage to sell all the units even after the project is completed yeah. This is where our overhang numbers come from.

Header Photo by Pavel Danilyuk from Pexels

Eco World Results

Article in nst.com.my   Eco World Development Group Bhd’s net profit eased 1.9 per cent year-on-year (YoY) in the third quarter (Q3) ended July 31, 2021, to RM35.15 million from RM35.83 million recorded previously.

Its Q3 revenue decreased 6.1 per cent YoY to RM448.91 million from RM477.87 million mainly due to more completed or near-completed properties being sold during the period.

For the first nine month period, Eco World Development’s net profit soared 59.2 per cent YoY to RM139.90 million from RM87.88 million, while revenue rose 1.47 per cent to RM1.38 billion from RM1.36 billion.

It said, “The reopening of its sales galleries, subject to strict standard operating procedures (SOPs) and regular Covid-19 self-testing to ensure the safety of both visitors and staff members and enable Eco World Malaysia to proceed with plans for the launch of several new phases before the end of the year.”

“Moving ahead, Malaysia’s rapid vaccination rate has placed the country on track to achieve the targeted 60 per cent immunisation rate by the end of September 2021 which should enable the reopening of nearly all economic sectors based on the government’s National Recovery Plan.” Please do read the full article for even more insights here: Article in nst.com.my 

 

When sales galleries are allowed to open

It’s a simple understanding that when it comes to properties, we can view as many 360 virtual tours we like but nothing beats dropping by the sales gallery, speak to the sales people, ask lots of questions and usually they will serve us coffee too. I know, some would debate that for the millennials, they see the virtual 360, they can decide to proceed and buy. Good for these millennials then and I wish them all the best.

 

My personal experience (okay, maybe I am a minority? 😛 )

As someone who bought the first property since 2002 and now have access to swimming pools in 6 cities / towns in Malaysia, I can tell you this story. Buying a property is not like buying shampoo from a shampoo advertisement where the first 500 gets a free sachet of conditioner with the shampoo. It’s so easy to just click and buy that shampoo especially if the model’s hair shown in the advertisement looks like what you like to have too. That’s applicable only to shampoo okay. For properties, sales galleries are needed. Any other proptech is a good enabler tool, not the final closure tool.

Expect a higher transaction number if people could view the units

Coming back to the decision making part. Humans are emotional creatures. if we can see, we can touch and we feel cooling inside the show unit (as they blast the aircon in full), we will feel better with making a decision. Yes, I will restart my sales gallery visitations too. I think it’s great to keep asking questions and know what’s happening moving forward and will continue to share too. However, generally with more viewings, there would be a higher number of transactions too. Let’s see if my thoughts will come true yeah.

Happy viewing.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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