Eco World Development / Leong Kok Wah

[winston]

not vested

Partnering with SD Guthrie – a win-win deal

MOU signed for industrial park in Negeri Sembilan

We are positive on ECW’s latest MOU with SD Guthrie (SDG MK, BUY, CP MYR4.92, TP MYR5.41) and NS Corporation (state government representative) to develop a 1,166-acre industrial park in Negeri Sembilan.

The collaboration is a win-win, with ECW leveraging SDG’s sizeble landbank and SDG benefiting from ECW’s strong track record and branding.

We maintain our earnings forecasts and MYR2.25 TP (1.3x FY25E P/B) pending further details. Reiterate BUY.

Source: Maybank

https://rfs.cgsi.com/api/download?file= ... 4eb0ddf970

[winston]

Eco World Development Group Berhad - MOU to Develop Industrial Park in Negeri Sembilan
Date: 2024-12-19
Firm: MIDF
Price Target: 2.01

Eco World Development Group, SD Guthrie Berhad (SD Guthrie) and NS Corporation (NS Corp) entered a Memorandum of Understanding (MOU) to jointly develop 1,166 acres industrial park in Bukit Pelandok, Negeri Sembilan.

The strategic collaboration was following SD Guthrie unlocking value of its landbank in Malaysia with high development value.

The industrial park is positioned within the Malaysian Vision Valley 2.0 (MVV 2.0) economic corridor.

The GDV for the industrial park is estimated at RM2.95b.

The industrial park to be developed over eight years, which will feature industrial lots, ready-built factories and commercial properties tailored to high-growth sectors, including those in the aerospace, electrical and electronics, logistics, and biotechnology industries.

Source: MIDF

https://klse.i3investor.com/web/priceta ... arch/74002

[winston]

Eco World Development Berhad - Highest Pre-Sales Ever
Date: 2024-12-13
Firm: PUBLIC BANK
Price Target: 1.90

Eco World Development (ECW) ended FY24 with a quarterly net profit of RM83.4m (>100% YoY, +3.7% QoQ). Again, the results were dragged by impairments on investments amounting to RM38m in the absence of which, Group core net profit would have come in at about RM341.5m, surpassing our and consensus FY24 net profit estimates by about 12%.

Total pre-sales clinched breached the RM4bn (RM4.07bn, specifically) mark which is a record high for the Group.

Unbilled sales were down slightly to RM3.96bn (from RM4.49bn a quarter ago) but we believe the Group should not have problems maintaining it at the RM4bn levels with more launches impending.

Separately, Eco World International Berhad (EWI) achieved RM531m sales exchanges plus reserves of RM50m adding up to a total of RM581m in FY24. All told, we adjust FY25-26 estimates upwards by 8%/13% after imputing higher margins as most of its projects are from mature townships that generally yield better margins.

Maintain Neutral though we nudge TP higher to RM1.90 (from RM1.50 previously) or about 10% premium to book value, given its consistency of delivering profits and decent dividend yield.

https://klse.i3investor.com/web/priceta ... arch/73967

[winston]

Tuah 1895 Tour Sheds Light On BBCC’s Integrated Development

Our tour to Tuah 1895 provided insight to ECW’s broader efforts to build recurring income and capitalise on project appreciation, while expanding its commercial asset footprint.

Value has emerged following the unwarranted sell-down on its unaffected DC deals.

Based on our checks, we expect land deal announcements in 1Q25 as QUANTUM Edge nears sell-out.

The ongoing discussion on the Negeri Sembilan land acquisition for EBP 7 provides potential upside to our RNAV.

Maintain BUY. Target price: RM2.37.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

EcoWorld’s data centre bet hits jackpot with RM1.3bil payoff

by Lee Min Keong

In less than a year since, the property developer has sealed three land sale deals totalling about RM1.3 billion for data centre projects in Johor.

Earlier this week, EcoWorld announced it is selling 138.5 acres of industrial land located within its Eco Business Park I development in Tebrau, Johor Bahru, to Microsoft for RM693.96 million cash.

This will be its second land deal with the software giant, following the sale of 123 acres of land within the Eco Business Park VI in Kulai for RM402.3 million in June 2024. The two deals with Microsoft, which plans to operate data centres at the locations, total RM1.1 billion.

Sandwiched between these two deals, EcoWorld sold 57 acres in Eco Business Park VI to one of Asia’s leading data centre providers, Princeton Digital Group, for RM223.8 million last August.

Source: The Star

https://www.freemalaysiatoday.com/categ ... e=smartech
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[winston]

not vested

Positive deals with Google

Signs data centre deal with Google

We are positive on ECW’s latest deals with Pearl Computing (M) S/B, which include the 58-acre industrial land sale (MYR266m) and a 20-year buildthen-lease shell building for data centres in Eco Business Park V (EBPV).

The latter aligns with ECW’s plan to expand its investment properties for future income sustainability and stability.

We adjust our FY25-27E earnings forecasts by -7% to +13% and raise our RNAV estimate by +9 sen to MYR3.13.

We maintain BUY on ECW with a higher TP of MYR2.50 (on 0.8x P/RNAV).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/439505.pdf

[winston]

not vested

Eco World upbeat about its prospects

The group said it is confident of achieving its RM3.5bil sales target for the current financial year (FY25).

For its FY24 ended Oct 31, 2024, EcoWorld Malaysia saw its net profit jump by 60.3% year-on-year to RM303.5mil, as revenue rose 1.4% to RM2.26bil.

Source: The Star

https://www.thestar.com.my/business/bus ... -prospects

[winston]

not vested

Stronger sales on the cards for EcoWorld this year

EcoWorld had expanded into data centres with the sale of 58.1 acres of land and the signing a of build-and-lease deal in Eco Business Park V in Selangor.

Source: The Star

https://www.thestar.com.my/business/bus ... -this-year

[winston]

not vested

Strategic MVV land deal sealed

Developing industrial park with SDG and NS Corp

We are positive on ECW’s latest tripartite agreement with SDG and NSC to develop a 1,195-acre industrial park in Negeri Sembilan.

The partnership is synergistic, combining SDG’s large landbank with ECW’s proven track record.

We fine-tune our FY27E earnings by -0.5%.

We lower our TP to MYR2.21 (-30 sen, 0.7x FY25E P/B) to account for slower economic conditions that may impact sales.

ECW remains our top BUY in the sector.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/451123.pdf

[winston]

not vested

EcoWorld shares rise, analysts positive as plan for RM3b industrial park advances
Stock Focus

By Luqman Amin

EcoWorld signed a tripartite agreement for 55% in a special purpose vehicle to develop the 1,195-acre project within the Malaysia Vision Valley 2.0 economic corridor.

SD Guthrie Bhd (KL:SDG) will hold a 30% stake, and Negeri Sembilan state agency NS Corporation will have the remaining 15%.

EcoWorld, to be appointed as the development manager, will pay RM572.76 million to acquire the land from SD Guthrie to develop the project to be known as Eco Business Park VII in the Jimah district. NS Corp will be the state-appointed coordinator and custodian of the corridor master plan.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/752274