Eco World Development / Leong Kok Wah

[winston]

not vested

EcoWorld in prime position for Johor growth

Poised to capitalise on the vibrant industrial space in Johor.

Johor-Singapore Special Economic Zone (JS-SEZ) initiative.

Back in Sept 23, EcoWorld Malaysia had acquired 404 acres of land in Kulai, Johor for RM211mil.
(Eco Business Park VI).

EcoWorld Malaysia is one of the largest industrial landowners in Iskandar Malaysia in Johor.

Will have five business parks, four in Iskandar Malaysia and one in the Klang Valley.

Source: The Star

https://www.thestar.com.my/business/bus ... hor-growth

[winston]

Eco World Development (ECW MK)
2H sales to be boosted by new projects

Update on upcoming projects

We expect ECW to achieve stronger sales in 2HFY24 driven by the launch of two new projects in Kajang and Kulai with a combined GDV of MYR2.1b.

These projects are scheduled for launch by 3Q/4QFY24.

We maintain our FY24 sales assumption of MYR3.7b (5.7% higher than ECW’s sales goal).

No change to our earnings forecasts and MYR1.83 TP (on 1.1x FY24E PBV).

Our BUY recommendation is backed by 4.3% net DY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/375729.pdf

[winston]

Eco World Development Bhd (ECW)

China’s Haitian Group has bought 92 acres of land in ECW’s Eco Business Park II in 2023 while UEM Sunrise Bhd has signed a memorandum of understanding (MOU) with ITRAMAS Corporation Sdn Bhd and China Machinery Engineering Corporation to form a strategic partnership aimed at developing a 40-acre Renewable Energy Industrial Park in Gerbang Nusajaya, Johor.

Elsewhere, Bridge Data Centres backed by the Chinese tech giant ByteDance launched its data centre in Sedenak Tech Park, Johor in October 2022.

Potential beneficiaries are sizeable landowners involved in industrial parks (ie ECW) and unlisted landowners such as Johor Corp and Iskandar Investment Bhd.

For exposure in the industrial property segment, Maybank IB Research likes ECW for its hands-on management, exposure in the industrial property segment in Klang Valley and Johor (10% of total gross development value) and relatively healthy balance sheet (0.3 time net gearing).

Source: Maybank

[winston]

not vested

EcoWorld Development (ECW MK)
2QFY24: Results In Line; Likely Can Achieve Close To RM4b Sales In FY24

ECW’s 1HFY24 net profit increased 19% yoy. Including an industrial land sale to Microsoft, ECW’s achieved RM2.67b sales (74% of its sales target of RM3.5b), suggesting that it may surpass this target and potentially hit around RM4b, reaching its all-time high sales in FY17.

Maintain BUY. Target price: RM2.05.

Source: UOBKH

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

[winston]

not vested

Introducing a new business pillar

“QUANTUM” to drive industrial segment further 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.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/395947.pdf




chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://mkefactsettd.maybank-ke.com/PDFS/395947.pdf

[winston]

Reaping the fruits of its industrial park

Kulai site visit note

We visited ECW’s Quantum Edge business park (QEBP) in Kulai last week.

With secured land deals to Microsoft and Princeton Digital Group (PDG), QEBP is expected to start contributing to earnings from FY25E onwards.

Management is actively negotiating with data center (DC) operators and could secure 1-2 DC-related land sale by the end of 2024/2025.

We raise FY25-26E earnings forecasts by +1% to +2%.

Our TP is unchanged at MYR1.96 (on an unchanged 1.1x FY25E P/B). Maintain BUY.

Source: Maybank

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://mkefactsettd.maybank-ke.com/PDFS/408677.pdf

[winston]

Surpassing promises

Profit and sales beat expectations; reiterate BUY ECW’s 4QFY24 core net profit of MYR121m (+37% YoY, +39% QoQ) and FY24 locked-in property sales of MYR4.07b exceeded both our and consensus estimates.

Management has set a conservative FY25 sales target of MYR3.5b (-15% YoY).

We revise our FY25-26E earnings forecasts by -5% to +17%.

Our new TP of MYR2.25 is based on 1.3x FY25E P/B (+3.5SD of mean; from 1.1x or +2.5SD), with the re-rating to reflect expectations of higher data center developments in Quantum Edge and Eco Business Park V. BUY.

Source: Maybank

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://mkefactsettd.maybank-ke.com/PDFS/426333.pdf

[winston]

Surpassing promises

Profit and sales beat expectations; reiterate BUY ECW’s 4QFY24 core net profit of MYR121m (+37% YoY, +39% QoQ) and FY24 locked-in property sales of MYR4.07b exceeded both our and consensus estimates.

Management has set a conservative FY25 sales target of MYR3.5b (-15% YoY).

We revise our FY25-26E earnings forecasts by -5% to +17%.

Our new TP of MYR2.25 is based on 1.3x FY25E P/B (+3.5SD of mean; from 1.1x or +2.5SD), with the re-rating to reflect expectations of higher data center developments in Quantum Edge and Eco Business Park V. BUY.

Source: Maybank

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://mkefactsettd.maybank-ke.com/PDFS/426333.pdf

[winston]

not vested

4Q Results

Revenue: -24%; RM 638m
EPS: 25x; 0.0283; RM 83m
Net Asset: RM 1.66

https://www.bursamalaysia.com/market_in ... id=3508549

[winston]

not vested

Remains growth-centric in FY25F

Management reiterated the FY25F sales target of RM3.5bn while highlighting that the completion of ongoing land acquisitions will boost future sales growth.

The group is gradually building up a portfolio of investment assets for recurring income which will be made up of mainly commercial and industrial assets.

Reiterate Add with an unchanged TP of RM2.44 (40% discount to RNAV), which implies 1.4x FY26F P/BV (+2.0 s.d. from its 10-year mean of 0.66x).

Source: CIMB

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