EcoWorld Targets Up to 30% Recurring Income Growth Over Next Five Years — CEO

Key Growth Strategy

• Eco World Development Group Bhd (KL:ECOWLD) aims to increase recurring income from 20% to 30% of total revenue within the next three to five years, according to President and CEO Datuk Chang Khim Wah.
• Growth will be driven by five key business pillars:
  • Eco Hubs (commercial spaces)
  • Eco Business Parks (green industrial parks)
  • Quantum (data centres)
  • Eco Townships (landed residential homes)
  • Eco Rise (high-rise developments)
• Quantum, which focuses on large-scale data centre-related land leases, is one of the group's fastest-growing segments.

Expansion in Data Centre Leasing

• EcoWorld has secured four industrial land lease deals worth RM1.59 billion since August 2024 with global tech giants Microsoft and Google.
• The latest deal, announced Tuesday, involves a 20-year, RM266.1 million triple-net lease with Google's affiliate, Pearl Computing Malaysia Sdn Bhd, for 92 acres of land.
• Despite its data-centre expansion, EcoWorld emphasized that it remains a real estate business, not a technology player.
  • “We are not in the data business. It's a pure land transaction,” Chang clarified.

No Plans for Special Dividend

• Despite achieving record-breaking RM4.07 billion sales in FY2024, EcoWorld has no plans for a special dividend.
• Instead, the group will maintain or increase regular dividend payouts, similar to previous years.
• FY2024 dividend remained at six sen per share.
• The decision aligns with EcoWorld’s strategy to reinvest capital into land acquisitions, build-and-lease projects, and expansion.

Financial Performance & Market Position

• Net profit surged 60.33% YoY to RM303.54 million in FY2024, compared to RM189.32 million in FY2023.
• Annual revenue remained steady at RM2.26 billion.
• EcoWorld’s share price closed at RM1.96, up one sen (0.51%) on Wednesday, valuing the company at RM5.8 billion.