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Research by Public
Neutral – TP RM1.50

“FY24 Sales Target On Track"

Eco World Development (ECW) registered 2QFY24 net profit of RM70.0m (+11.7% YoY, +0.6% QoQ) which is within our and consensus full year estimates. YTD, Group net profit of RM139.7m (+16.7%) constituted about 49.6% and 50.6% of our and consensus estimates. Pre-sales remain encouraging with about RM2.18bn secured in 7 months of FY24, representing 62% of its FY24 sales target of RM3.5bn, driven mainly by Iskandar Malaysia projects (RM1.33bn sales achieved, or 61% of total YTD sales). Correspondingly, Group unbilled sales rose to RM4.03bn from RM3.88bn a quarter ago. Separately, Eco World International Berhad (EWI) recorded loss before tax of RM13.9m in 2QFY24 (vs 2QFY23 loss before tax of RM2.1m) mainly due to, i) lower gross profit as the stocks in the Australian projects are mostly fully sold, ii) impairment loss on amount owing by EcoWorld London as the joint venture continues to invest resources to procure better planning consents for its remaining projects and iii) lower foreign exchange gains. All told, we keep our estimates and TP of RM1.50 unchanged. Maintain Neutral.

Analyst:
Tan Siang Hing
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$KLSE-ECOWLD
Research by Public
Neutral – TP RM1.50

“FY24 Sales Target On Track"

Eco World Development (ECW) registered 2QFY24 net profit of RM70.0m (+11.7% YoY, +0.6% QoQ) which is within our and consensus full year estimates. YTD, Group net profit of RM139.7m (+16.7%) constituted about 49.6% and 50.6% of our and consensus estimates. Pre-sales remain encouraging with about RM2.18bn secured in 7 months of FY24, representing 62% of its FY24 sales target of RM3.5bn, driven mainly by Iskandar Malaysia projects (RM1.33bn sales achieved, or 61% of total YTD sales). Correspondingly, Group unbilled sales rose to RM4.03bn from RM3.88bn a quarter ago. Separately, Eco World International Berhad (EWI) recorded loss before tax of RM13.9m in 2QFY24 (vs 2QFY23 loss before tax of RM2.1m) mainly due to, i) lower gross profit as the stocks in the Australian projects are mostly fully sold, ii) impairment loss on amount owing by EcoWorld London as the joint venture continues to invest resources to procure better planning consents for its remaining projects and iii) lower foreign exchange gains. All told, we keep our estimates and TP of RM1.50 unchanged. Maintain Neutral.

Analyst:
Tan Siang Hing
tan.sianghing@publicinvestbank.com.my

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)