Eco World Development Group Berhad

Titan Trading Notes For Wednesday [2/4/2025]:

KLCI closed red around the 1513 points region during last Friday with an overall negative market sentiment here. Overall still not looking too good yet.

Main stocks that showed strong buying momentum would be the likes of HI, OVERSEA, PNECEB, THRIVEN, VELOCITY, TANCO, and PASUKGB. Most of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.

As you can see, the main theme for now are old penny stocks...which looks quite interesting as we could be entering back into a penny stock theme once more like we once did during 2020 after the market crashed.

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD) since its earlier retracement back towards the RM 1.70+ main support levels, was able to rebound strongly over the past few weeks here and on Friday, was even able to breakout back towards the RM 1.97 regions with good volume.

For now, looking pretty strong here and if able to hold above its RM 1.90+ immediate support on the daily chart, could breakout from its RM 2.05+ major resistance levels soon in the coming weeks for an uptrend continuation pattern.

Will be monitoring ECOWLD closely.

TENCENT (HK) Since breaking out towards the HKD 540+ resistance levels, been retracing and consolidating over the past month here all the way back towards the HKD 500+ main support levels here on the daily chart.

So far still able to hold quite well here and could be potentially forming a higher low region. If able to sustain, could bounce back towards and beyond the HKD 520 - HKD 530+ major resistance levels in the coming weeks here.

Will be monitoring TENCENT closely

Remisier note post q4 result

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
$KPJ / 5878 (KPJ HEALTHCARE BERHAD)
$GAMUDA / 5398 (GAMUDA BERHAD)
-

Good morning 🌻

4Q24 Results: An Abysmal Quarter

- 4Q24 represented one of the most peculiarly (and frustratingly) depressing results seasons ever witnessed in recent memory, ie enduring a perfect storm of non-systemic but broad-based company specific disappointments
- These include Dialog’s unguided asset impairment, Hartalega’s guidance for a poorer 1Q25, Nestle’s revenue/earnings plunge, Genting’s dividend cut, etc
- Equally peculiar is the divergence of 2025-26 earnings revisions for coverage universe (-1.3%/-2.0%) and FBMKLCI (-0.1%, +0.4%) due to distortions ie upgrades for utility and plantation
- However, most sectors endured earnings cuts (refer to table of revisions by sector)

- Nevertheless, maintaining our playbook that sentiment will recover by 2Q25, guided by easing external headwinds
- But cutting FBMKLCI target to tentatively 1,690 from 1,800 after lowering valuations (-1SD or 14.9x 2025 earnings, from -0.75SD or 15.3x)
- Recalibrating TOP PICKS: EcoWorld (ECW), Gamuda Berhad, Hartalega, Hong Leong Bank, KPJ Healthcare (KPJ), RGB International, Press Metal and VS Industry.
- New additions ECW, Gamuda, Hartalega and KPJ replace Inari, IOI Property, My E.G. Services and Pekat

Thanks.

Titan Trading Notes For Monday [3/3/2025]:

KLCI closed back red towards the 1574 points region with an overall negative market sentiment as we still saw over 860 counters closing red on Friday. Daily trading volume surged back towards the 4.3 billion mark, but mainly dominated by sellers still.

Main stocks that showed strong buying momentum would be the likes of PBBANK, MAYBANK, TANCO, AMBANK, and SRIDGE. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.

$PBBANK / 1295 (PUBLIC BANK BERHAD) since retracing back towards the RM 4.40+ main support levels from the week before, been able to hold well and rebound back towards the RM 4.50+ regions with huge volume and buying momentum here.

This came after it announced solid earnings from the latest quarter. For now looking quite strong and ripe for a potential uptrend continuation pattern here. As long as able to hold above its RM 4.45+ support, could trend back up towards the RM 4.65 - RM 4.80+ major resistance levels soon.

Will be monitoring PBBANK closely.

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD) although faced some selling pressure from its RM 2.05+ major resistance levels over the past 2 weeks, been able to hold well above its RM 1.90+ support levels on the daily chart here.

On Friday, was able to rebound back towards the RM 1.99 regions with good volume, suggesting a potential uptrend continuation pattern soon. If able to keep this up, could start trending back towards the RM 2.10+ regions soon in the coming weeks.

Will be monitoring ECOWLD closely.

Sharing from my relationship manager

-


WHAT DC JITTERS?; LOOK BEYOND USUAL TECH PLAYS; MRDIY COMEBACK'S REAL?; MAXIS INTO SOLAR; GLOVES COMEBACK NOT AS EASY; O&G SERVICE PROVIDERS ALRIGHT; MIXED RESULTS SEASON...

*MY MKT:* *WHAT DC JITTERS?..* Understand the near-term jitters but judging by how things are panning out, long term thesis is *intact* as *ECOWORLD* can attest to following its *3rd land deal* in under a year, latest being with *MICROSOFT worth RM690mil.* Also *comforting* to know MICROSOFT’s planning to *develop/operate DC* on acquired land, further *proof* that MY’s DC space remains *resilient.* Further, this came on back of *AirTrunk’s plan* to develop *2nd DC in Johor* which is good for likes of *SUNCON, IJM & GAM.* True enough, *SUNCON* delivered *strong 4Q* thanks to *DC projects* & in *our call (>50 clients)* with mgmt., it’s clear that its *5 DC projects* have potential to be *upsized* with 1-2 full-sized conversions by *1Q25 worth c.RM2bn.* Meanwhile, mkt doesn’t seem to ascribe *much value to YTLP’s* DC ventures as *take-up* for 80MW balance needs to pick up *meaningfully + enough details* to justify further rerating.

While focus been on PROPERTY & CONSTRUCTION players, uncertainty from the noise gives us opportunity to *look* beyond the *usual DC/tech angle.* For instance, Trump’s tariff on *US Med Tech* market, though tough to quantify and is a *concern* for most Med Tech companies which have *manufacturing plants in Mexico & China,* should be taken *POSITIVELY by Msian* players as we could be *alternative hub* and likely *+VE mid-long* run for *PENTAMASTER & GREATECH.* At WESTERN DIGITAL analyst day, was highlighted that *NAND demand* to grow at *mid to high teens* rate *longer-term* though subdued *PC/Smartphone demand* in near term, could mean *NEUTRAL near-term* for *NOTIONVTEC & DUFU* but overall *+VE in longer run* as enterprise *storage* to drive overall *HDD demand* on AI storage.

As we’re constructive on *private consumption,* *MRDIY* still gives best *exposure* to this theme esp. having fallen *c.20% ytd*c.75% upside* with attractive *P/E of only 16.7x vs global peer’s 34x.* But feedback so far point to *fears of weak 4Q24* results as funds were scarred by *weak* release of its *3Q in Nov* which is understandable. Yes, earnings in *short term* could be dragged by *declining SSSG/automated* warehouse issues, but with more *store rollouts,* strong consumer *sentiment,* steady *gross margins* & *KKV’s contribution* should only help delivery of strong *3-yr EPS CAGR of 24%.* This on top of its plans to grow into *untapped* areas ie East Msia/Coast which is why, its *decline* really looks *overdone* plus *4Q* is when bulk of discount *incentives are booked,* which means 4Q should be *better QoQ.*

*Mixed results* so far at least for big ones. *MAXIS’ inline* with Prem’s/consensus as guidance for FY25 is similar to his estimates except for capex where he includes 5G capex. Interestingly, MAXIS like TIME has *ventured into solar panels* as a new revenue stream to increase customer retention. Obviously, *HARTALEGA* made waves with its disappointing *post briefing* updates as sales vol. could be *weaker QoQ* in March due to *frontloading in previous qtr* and *difficulty* in raising ASP despite US/China spat. But share price’s slight *rebound* following selloff shows there’s *trading angle* to this though caveat is, *cost pass through* ability isn’t as easy as *pre-pandemic.* O&G, while *DIALOG* gave a scare, *PERDANA/DAYANG* delivered an overall *strong 2024* though still fell short of *expectations* given *slower final qtr (monsoon)* but more importantly, now *Petronas’* outlook’s *addressed,* jobs & earnings for *services* sector will only *improve.*

*RECENT FLOWS: Results season flows have been better as we net bought of late though foreign funds cont. to sell. Heavy buying flows on names like MAY, MISC & MRDIY. Overall, mixed results so far.*

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD)
$HARTA / 5168 (HARTALEGA HOLDINGS BERHAD)
$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)

Titan Trading Notes For Thursday [20/2/2025]:

KLCI retraced back towards the 1580 points region with an overall bearish market sentiment as we saw over 750 counters closing red along with it for the day today. Daily trading volume settled around the 3.4 billion mark, mainly dominated by heavy selling activities here.

Main stocks that showed strong buying momentum today would be the likes of VELESTO, NATGATE, ECOWLD, BPURI, SCGBHD, GAMUDA, and CMSB. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD) since retracing back towards the RM 1.67+ main support levels, been able to recover quite well over the past few weeks here despite the shaky sentiment, even breaking out from the RM 2+ regions today with huge volume and buying momentum.

For now looking quite strong here and as long as able to hold above its RM 1.90+ immediate support levels on the daily chart, could continue to trend back up towards its RM 2.10+ major resistance levels in the coming weeks here.

Will be monitoring ECOWLD closely.

$NATGATE / 0270 (NATIONGATE HOLDINGS BERHAD) since consolidating over the past few weeks with RM 1.90+ as the main support levels, was able to breakout strong today towards the RM 2.05 regions towards closing with huge volume and buying momentum today.

So far looking very strong here and as long as able to hold above its RM 2+ immediate support levels on the hourly charts, could continue to trend back up towards the RM 2.19+ major resistance levels soon for a further rebound here.

Will be monitoring NATGATE closely.

Market sentiment not looking so good now with foreign funds selling heavily and a huge lack of retail participation, which leads to easy sell downs due to the lack of liquidity, especially for smaller-mid cap stocks.

Even for large cap stocks, we see it is quite obvious. As such, have to stay very cautious and perhaps consider making a move towards the US and HK markets.

Sharing from remisier. Note ln construction sector

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD) $MNHLDG / 0245 (MN HOLDINGS BERHAD) $COMCORP / 7195 (COMINTEL CORPORATION BHD)
-

*Construction Sector Flash Update 🚜

- It was announced yesterday that *Ecoworld is selling a 138.5acres land 🏞️* (freehold, industrial) in Iskandar Malaysia (Johor) *to Microsoft* for c.RM694m.

- *Closing the chapter on DC fears 📖?* Such sizeable capex cycle by global tech Big Boys continues to reiterate Malaysia's data centre landscape is still in inception phase and allays initial concerns on viability of DC pipelines in Malaysia.

- *Expect more DC-related contracts to be awarded in 2025F 🏢.* To recall, *Binastra* won a RM250m DC contract for the Mechanical, electrical, and plumbing (MEP) and Construction, Navigation and Surveying (CNS) last week for AIMS' DC. *MN Holdings* secured a RM163m DC contract in Southern Malaysia in Dec. Meanwhile, *Suncon* (e.RM9-11b DC tenders currently) and *Gamuda* (acquired 389acres land in Negeri Sembilan in Dec 24) are also expected to secure more DC works within 2025.

- *DC construction pipeline is far from exhausting 🔋.* Taking cue from mature DC countries such as US, SG, Japan, UK which has established DC hubs and capacities, Malaysia's DC expansion may still see 2-3 more cycles in phases, continues leveraging on ample and affordable natural resources. *Most visible hints 🧩 can be derived from aggressive landbank acquisitions by global tech big boys* in Malaysia which are sufficient to construct DCs of 1-1.5GW total capacity (just nice within the 7% country cap for AI chips capacity).

- *Quantifying potential contract value for domestic construction companies 🧮.* Taking cue from *Gamuda's Elmina DC* contract (RM1.74b; e.100MW), and comparing another scenario, *Princeton Digital's completed DC* (*150MW;* 31acres; *e. US$1.5b total investments)*, and another: *Suncon's Sedenak for Yondr's* DC (*RM3.5b;* 72.5-acre; *e.300MW*). *1GW* translates to *potential e.RM17-20b contract value?*

- *Further dissecting Ecoworld's land sales to Microsoft 🔬.* Microsoft bought 5 plots of land in Johor totalling c.369acres. While its yet to be clear whether full 369acres will be utilised for DC structure/build-ups (may include utilities/water plant or other core & shells), *we will not speculate on the construction contract value until concrete announcements.*

- That said, *Microsoft's DC pipeline in Malaysia fits well within the 1-1.5GW range,* with *potential >RM30b contract value in many phases* across years. For context, Microsoft previously also committed to *investing US$2.2b (c.RM10.5b)* in cloud computing and AI services in Malaysia throughout 2024-2028.

- *Chip restrictions not a concern, in our opinion💡.* Microsoft is also likely classified as an UVEU. In short, *VEUs are allowed* to: *i)* install at most *7%* of their controlled AI chips *in one Tier 2 country* (outside US); and *ii)* install at most *25%* of their computation AI chips capacity *in all Tier 2 countries* (outside US). Given *Microsoft's* sizeable investments in US, we deem that the *7% AI chips capacity* is *sufficient for such 1-1.5GW DC pipelines in Malaysia.*

- *Who's the most-likely beneficiary?* We think that it may be ☀️🏗️. Also to recall, Suncon secured a RM748m DC project for a US client (not sure who is it😉) back in March 2024.

- *Suncon's DC tenderbooks👷🏻.* In our *physical meeting with Suncon’s management last Wednesday🤓,* we gathered that out of Suncon's current e.RM15-17b tenderbook, e.60-70% are DC-related.

- *While this newsflow reaffirms earnings upcycle for selective Malaysian construction companies,* further monitoring required for coming months on whether Malaysia's DC investment theme is losing investor’s interests and no longer replicate last year’s strong momentum.

- *Recall that we’ve timely downgraded Suncon back to HOLD last Friday* after share price reaching close to our RM4.54 TP, and after share price rebounded >30% since mid-Jan.

`

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by Maybank

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by Maybank

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by Kenanga
UNDERPERFORM- TP RM1.41
" Accelerated Sales Reflected in Price”

ECOWLD’s 9MFY24 results met expectations. Its 9MFY24 core net profit grew 18% YoY on better property sales and the turnaround of 27%-owned EWINT (Not Rated). It has surpassed its FY24 sales target of RM3.5b, already achieved in 9MFY24, albeit with no revision to the group’s full-year expectations. We keep our forecasts and TP of RM1.41. Maintain UNDERPERFORM.

Analyst:
Clement Chua
clement.chua@kenanga.com.my

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by MIDF
Neutral – TP RM1.81

" Earnings Lifted by Cost Savings”

• 9MFY24 earnings above expectations
• Earnings lifted by cost savings
• New sales target met
• Earnings forecast revised upwards
• Maintain NEUTRAL with a revised TP of RM1.81

Analyst:
Jessica Low Jze Tieng
jessica.low@midf.com.my

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by Public
Neutral – TP RM1.50

" Achieves Sales Target in 10 Months”

Eco World Development (ECW) reported an RM80.4m (+21.3% YoY, +14.8 QoQ) net profit in 3QFY24, surpassing our and consensus expectation, with YTD (9MFY24) net profit of RM220.1m (+18.3% YoY) already constituting c. 79% of our and consensus full year estimates. The higher profits were mainly due to better margins recorded as gross profit margin improved from 27.2% in 3QFY23 to 31.3% in 3QFY24. The Group’s net gearing ratio as at 31 July 2024 further reduced to 0.21x, from 0.24x in 2QFY24, with cash reaching a record high of RM1.55bn. Encouragingly, its sales momentum continued with pre-sales already at RM3.5bn in 10 months, exceeding FY24 sales target. Unbilled sales remained healthy at RM4.49bn, from RM4.03bn a quarter ago. Separately, Eco World International Berhad (EWI) achieved RM501m sales exchanges plus reserves of RM48m adding up to a total of RM549m in 10 months of FY24. All told, we adjust FY24 upwards by 4.2% after imputing higher margins. Maintain Neutral with TP of RM1.50.

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

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by CGS
ADD – TP RM1.91

" 9MFY24 results within expectations”

■ 9MFY10/24 core net profit of RM231.9m came in within our expectations at 78% of our FY24 estimate but beat Bloomberg consensus’ (at 82%).
■ We believe the group is on track to surpass its FY24 sales target of RM3.5bn as it has recorded exactly RM3.5bn in new sales in 10MFY24.
■ Reiterate Add with an unchanged RNAV-based TP of RM1.91 which implies 1.1x 2025F P/BV (+2.0 s.d. from its 10-year mean of 0.61x).

Analyst:
Lucas TAN
lucas.tan@cgsi.com
CHONG Tjen-San, CFA
tjen-san.chong@cgsi.com

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by MIDF
Neutral - TP RM1.79

"New Industrial Revenue Pillar"

Maintain NEUTRAL with a revised TP of RM1.79. We revise our TP for Eco World to RM1.79 from RM1.63 as we narrowed our RNAV discount to 23% from 30% in view of better earnings visibility for its industrial property division. Nevertheless, we think that positives are largely priced in. Valuation of Eco World is fair at this level, trading above its latest NTA of RM1.65 per share. Hence, we maintain our NEUTRAL call on Eco World.

Analyst:
Jessica Low Jze Tieng
jessica.low@midf.com.my

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by Kenanga
Underperform - TP RM1.41

"Capitalising on Microsoft’s Presence"

ECOWLD hopes to take its industrial products to a higher level by rebranding some of them Quantum, starting with products in Eco Business Park VI in Kulai, Iskandar Malaysia, backed by anchor buyer Microsoft. We believe ECOWLD is capitalising on the presence of Microsoft. We maintain our forecasts, TP of RM1.41 and UNDERPERFORM call.

Analyst:
Clement Chua
clement.chua@kenanga.com.my

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by Maybank
Buy – TP RM1.96

“Introducing a new business pillar"

The industrial revenue pillar, QUANTUM, will drive ECW’s market share in the industrial market segment further with a new branding and marketing strategy catering for data center, AI, cloud computing, high-tech manufacturing and R&D. ECW’s 404-acre industrial park in Kulai will be renamed as Quantum Edge, with Microsoft as its first anchor client. We maintain our earnings forecasts and MYR1.96 TP. Reiterate BUY.

Analyst:
Wong Wei Sum, CFA
weisum@maybank-ib.com

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) - Starts to appear on mainstream media, and the management believes the growth trajectory can still continue.

SKBSHUT had been covered here in Stockbit since the early days by @Penglam , and I also shared a little bit more about them after their Archidex exhibition recently.

Few days back, the Star BizWeek team had an interview with them with a few interesting points to note of shared by group MD Michelle Sin. If you subscribe to the Star, you can read the article yourself here: https://cutt.ly/kezcnoj6

Let's just go through some main highlights.

1. SKBSHUT's net profit had climbed from RM 5mil in fy21, to RM 9.6m in FY22, and RM 14.9m in FY 23. Even taking out the covid pandemic impact, prepandemic they were only recording around RM 2-3mil of profit, so the growth is very strong indeed. Michelle hinted that the growth is not one-off, but is a result of the company's focus and resetting to improve productivity and efficiencies.

2. They have earmarked RM 100mil for expansion into a new fully automated manufacturing facility, of which ~RM 36 mil was already spent to acquire the 9.8acres land at $ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD) 's Eco Business Park V in Puncak Alam. Construction of the new plant will start soon and they expect to relocate and go live by end 2025. (Based on their operating cash flow, I believe they won't need to incur any dilution to fund the expansion)

3. Currently, all their machines at their KD plant are running but capacity can be still increased. However, in the next 5 years they expect that the existing plant will be insufficient.

4. As more MNCs come into Malaysia, they require stringent standards for their parts which bodes well for SKBSHUT. For example, data centers require doors that fulfil a range of functions including security, fire resistance, acoustic performance, and so on. On the matter of DC supply chain, SKBSHUT had been supplying their products to DCs since over 10 years ago, long before the current DC craze. With the new DCs coming up, they are indeed seeing rising orders for their products.

5. About half of their sales are to export markets to over 40 countries with ASEAN as its biggest market, and also includes Oceania, Middle East, and India. New markets that are growing include Qatar, Saudi Arabia, and China.

6. Their products are focused more on providing customised solutions and emphasizing quality and meeting international standards, rather than on pricing.

7. SKBSHUT is moving towards higher performance and ESG-based products; last year they launched their powerless flood shutters and this product is seeing a lot of attention from local and international customers, especially due to the unpredictable flooding patterns nowadays.

8. In 2024, their new shutter products are blast resistant shutters, often used in the O&G sector (I heard, but haven't verified, that some refineries are using their blast shutters), and also high impact wind resistant shutters to withstand typhoons and hurricanes.

9. What would SKBSHUT do with the KD land and factory after relocating? No plans yet, for now. Interestingly, the land is held at quite the cheap valuation in the books, last revalued in 2011, and (this is very much speculation) if they decide to sell it.........

10. For now though, SKBSHUT has no plans to diversify and will focus on being a manufacturer.

Titan Trading Notes For Tuesday [30/7/2024]:

$KLSE-KLCI had a good breakout back towards the 1624 points region with an overall positive market sentiment today after the bloodbath from last week due to US market corrections. Daily trading volume remains healthy around the 4.2 billion mark, which is pretty decent here.

Main stocks that showed strong buying momentum would be the likes of VELOCITY, MUIIND, MUIPROP, DNEX, ECOWLD, JCY, SIMEPROP, WCT, CAPITALA, HOHUP, IJM, SUNWAY, and CIMB. All of which were able to sustain their rallies throughout the day on the top volumes list.

$MUIPROP / 3913 (MUI PROPERTIES BERHAD) was definitely the star performer for the day as it broke out all the way towards the RM 0.365 regions with huge volume and buying momentum after consolidating over the past few years with RM 0.25+ as the main resistance.

For now looking very strong here, potentially on a parabolic rally as long as able to sustain above its RM 0.33+ immediate support levels on the hourly charts, could continue on towards and beyond the RM 0.385+ regions.

Will be monitoring MUIPROP closely as something big could be brewing here.

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD) after retracing back towards the RM 1.62+ main uptrend support levels over the past week, was able to hold its ground as a higher low region and broke out all the way towards the RM 1.75+ regions today with huge volume and buying momentum.

So far looking very strong and healthy on an uptrend here on the daily chart. As long as it's able to sustain above its RM 1.65+ immediate support, could continue on towards and beyond the RM 1.80++ regions soon for an uptrend continuation pattern.

Will be monitoring ECOWLD closely here.

$NOTION / 0083 (NOTION VTEC BERHAD) since retracing back towards the RM 1.90+ main support levels, had been able to hold well and breakout today back towards the RM 2.13 regions with good volume and buying momentum.

So far looking quite strong and ripe here for a potential uptrend continuation pattern towards and beyond the RM 2.30++ major resistance levels in the coming week itself.

Additional Listing Announcement /Subdivision of Shares

KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) has recorded RM2.18 billion in sales during the first seven months of the financial year 2024 (FY24), putting it on course to meet its sales target of RM3.5 billion.

© New Straits Times Press (M) Bhd

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
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)
Research by MIDF
Neutral – TP RM1.63

“Solid Earnings in 1HFY24"

Maintain NEUTRAL with an unchanged TP of RM1.63. We make no changes to our earnings forecast for FY24F/25F/26F. We also maintain our TP for Eco World at RM1.63, based on 30% discount to RNAV. We see positive earnings outlook and stable sales prospect for Eco World. Nevertheless, we think that positives are largely priced in. Valuation of Eco World is fair at this level, trading close to its latest NTA of RM1.65 per share. Hence, we maintain our NEUTRAL call on Eco World.

Analyst:
Jessica Low Jze Tieng
jessica.low@midf.com.my

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by Maybank
Buy – TP RM1.96

“All good"

ECW’s 2QFY24 core net profit of MYR72m (+16% YoY, +5% QoQ) and 7MFY24 locked-in property sales of MYR2.2b were in line. We revise our FY24-26E earnings forecasts by -1.6% to +31.4% after factoring in new FY24E sales assumption of MYR3.9b (+4%), Microsoft land sale, and a higher stake in ECWI. We also raise DPS to 7sen (from 6sen). Our new TP is MYR1.96 (+13sen) on an unchanged rolled forward 1.1x FY25E P/B. BUY.

Analyst:
Wong Wei Sum, CFA
weisum@maybank-ib.com

$ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD)
Research by Kenanga
Underperform – TP RM1.41

“Robust Sales but Priced In"

ECOWLD’s 1HFY24 results met expectations. Its 1HFY24 core net profit grew 17% YoY on better property sales and the turnaround of 27%-owned EWINT (Not Rated). It is on track to meet its FY24 sales target of RM3.5b with RM2.2b achieved in 1HFY24. We keep our forecasts but raise our TP by 3% to RM1.41 (from RM1.37). Maintain UNDERPERFORM.

Analyst:
Clement Chua
clement.chua@kenanga.com.my

ECOWLD - Notice of Book Closure

First Interim Dividend

Change in Boardroom - PUAN NOR REJINA BINTI ABDUL RAHIM

Change in Remuneration Committee - PUAN NOR REJINA BINTI ABDUL RAHIM

Change in Remuneration Committee - DATO' SERI ROSMAN BIN MOHAMED

Change in Audit Committee - MADAM LIM HIAH ENG (MRS. LUCY CHONG)