Eco World Development / Leong Kok Wah

[winston]

Eco World Development (ECW MK) Sharing Prosperity

While the lifting of geographical restrictions for ECW and ECWI may initially seem like cannibalisation, we view it as a positive long-term move for ECW.

ECW benefits from:
a) generating income fees as the potential project manager for EWI’s projects, and b) an increased landbanking capacity via JVs with a zero-gearing EWI.

Importantly, EWI, currently still making losses, will no longer drag ECW’s earnings due to its reclassification to mark-to-market valuation.

Maintain BUY. Target price: RM2.37.

Source: UOBKH

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