EcoWorld Malaysia’s Stellar Performance: A Deep Dive into Their 2Q FY2025 Results
By Your Senior Blogger | June 26, 2025
Eco World Development Group Berhad (EcoWorld Malaysia), a prominent name in Malaysia’s property landscape, has just unveiled its financial results for the second quarter (2Q) of Fiscal Year 2025, covering February 1 to April 30, 2025. The report paints a remarkably positive picture, highlighting robust sales, significant profit growth, and a healthy financial standing. It’s clear that EcoWorld is not just building homes and business parks; they’re building momentum.
Key highlights that immediately jump out include achieving RM2.99 billion in sales within the first seven months of FY2025, already hitting 85% of their full-year target. Furthermore, the company announced an impressive 85% increase in Profit After Tax (PAT) for 2Q 2025 compared to the same period last year, alongside a declaration of a 2nd interim dividend of 2 sen per share, bringing the total year-to-date dividends to 3 sen for FY2025. Let’s unpack the details of this compelling report.
Unpacking the Core Financial Highlights
EcoWorld Malaysia’s 2Q FY2025 results demonstrate strong operational execution and strategic growth. The figures speak volumes about the company’s ability to navigate market conditions and capitalize on demand across its diverse portfolio.
Overall Financial Performance: A Snapshot of Growth
The second quarter saw substantial increases across key financial metrics:
2Q FY2025
Revenue: Up 58%
Gross Profit: Up 80%
Gross Profit Margin: 30.2%
Profit After Tax (PAT): RM129.8 million
Compared to 2Q FY2024
Revenue: Lower
Gross Profit: Lower
Gross Profit Margin: Lower
Profit After Tax (PAT): RM70.16 million (approx.)
This remarkable growth in revenue and gross profit is primarily attributed to the full consolidation of Paragon Pinnacle Sdn. Bhd. (developer of Eco Grandeur and Eco Business Park V), and the significant sale of 123 acres of industrial land at QUANTUM Edge to Microsoft Payments (Malaysia) Sdn. Bhd. Year-to-date PAT also saw a healthy 50% increase to RM210.1 million compared to the same period in FY2024.
Looking ahead, the company’s future revenue has reached an all-time high of RM5.22 billion as of May 31, 2025, providing strong visibility for future earnings and cash flow. This is a testament to their successful sales efforts and strategic project pipeline.
Business Unit Performance: Pillars of Success
EcoWorld’s diversified revenue pillars continue to drive performance across different market segments and regions. As of May 31, 2025, the year-to-date sales breakdown showcases their strategic focus:
| Revenue Pillar | Sales (RM’mil) | Market Segment | % of Total Sales |
|---|---|---|---|
| Eco Townships | 927 | Residential | 46% |
| Eco Rise | 432 | ||
| Eco Hubs | 430 | Commercial | 14% |
| Eco Business Parks | 240 | Industrial | 40% |
| QUANTUM | 960 | ||
| Total | 2,989 | 100% |
Geographically, Iskandar Malaysia projects were the largest contributors, accounting for RM1.67 billion (56%) of total sales, followed by Klang Valley (34%) and Penang (10%).
Industrial Segment: Setting New Benchmarks
The industrial segment, comprising Eco Business Parks and QUANTUM pillars, truly shone, achieving a record-breaking RM1.20 billion in combined sales. This figure already surpasses their full-year industrial sales for FY2024, signaling robust demand. The acquisition of 32.9 acres in Eco Business Park II by Deye New Energy Technology (Malaysia) Sdn. Bhd., a global solar inverter market player, underscores the appeal of EcoWorld’s industrial offerings to international entities.
To further capitalize on this momentum, EcoWorld has finalized terms for a strategic partnership with SD Guthrie Berhad and NS Corporation to develop 1,195 acres in Bukit Pelandok, Negeri Sembilan. This new development, Eco Business Park VII, is targeted for launch by the end of 2025, promising continued growth in this high-demand sector.
Residential & Commercial Segments: Sustained Demand
The residential segments, Eco Townships and Eco Rise, reported sales of RM927 million and RM432 million respectively, indicating sustained demand for both upgrader homes and high-rise residential units. The popular “duduk” series of apartments continues its success story, with 6,397 units sold in less than five years. EcoWorld plans to launch new parcels for “duduk” to meet this strong demand.
The commercial Eco Hubs pillar also saw an impressive 83% increase in sales compared to the same period in FY2024, reaching RM430 million, reflecting strong interest in their diverse commercial offerings.
Financial Health: Strong and Stable
EcoWorld Malaysia’s financial health remains robust. The Group’s net gearing ratio stood at a healthy 0.55 times as of April 30, 2025, supported by record-high cash balances (including deposits and short-term funds) of RM1.76 billion. Furthermore, the company anticipates over RM1 billion in cash inflows from the remaining proceeds of five large-tract industrial land sales secured in FY2024 and FY2025. This strong cash position provides significant financial flexibility and stability.
Navigating the Future: Risks and Prospects
EcoWorld Malaysia is clearly on an upward trajectory, with its strategic initiatives and diversified portfolio setting the stage for continued success. The company is well on track to comfortably exceed its FY2025 sales target of RM3.5 billion, a testament to its effective market strategies and product offerings.
The strong demand for industrial properties, driven by foreign direct investments and local manufacturing, positions EcoWorld favorably. Their expansion plans, such as Eco Business Park VII, are timely and strategic. On the residential front, upcoming launches like Eco Radiance and Eco Botanic 3, coupled with the ongoing success of the “duduk” series, are expected to fuel future growth.
While the report paints a very optimistic picture, the property development sector, like any other, operates within a dynamic economic environment. Factors such as shifts in consumer purchasing power, interest rate fluctuations, and global economic uncertainties can always influence market sentiment. However, EcoWorld’s diversified portfolio across different price points and segments, its strong balance sheet, and its focus on high-demand areas like industrial parks, provide a resilient foundation to mitigate potential headwinds.
Summary and Investment Recommendations
EcoWorld Malaysia’s 2Q FY2025 report showcases a company firing on all cylinders. The impressive sales figures, significant profit growth, and robust financial health underline a period of strong performance. The strategic focus on high-growth segments like industrial parks, coupled with sustained demand for residential offerings, positions EcoWorld for continued success. The declaration of dividends further signals the company’s commitment to delivering shareholder value.
Looking ahead, EcoWorld’s substantial future revenue and healthy cash reserves provide a strong buffer and fuel for future developments. Their proactive approach in securing new land banks and forming strategic partnerships demonstrates a forward-thinking management team poised to capitalize on market opportunities.
While the outlook is overwhelmingly positive, it’s prudent for investors to consider general market dynamics. Key factors to monitor include:
- Economic Headwinds: Broader economic slowdowns or inflationary pressures could impact consumer sentiment and property demand.
- Market Competition: The Malaysian property market remains competitive, requiring continuous innovation and effective marketing.
- Regulatory Changes: Potential shifts in government policies or property-related regulations could affect development costs or sales.
- Supply Chain Stability: Disruptions in the global supply chain could impact construction timelines and material costs.
However, EcoWorld’s diversified revenue streams, strong financial position, and strategic land bank acquisitions appear to provide a solid foundation to navigate these potential challenges.
