EcoWorld’s FY20-FY21 outlook remains stable

KUCHING: Eco World Development Group Bhd’s (EcoWorld) financial year 2020 (FY20) to FY21 outlook remains stable, driven by its projects in Malaysia and overseas.

In its company update on EcoWorld, the research team at AmInvestment Bank Bhd (AmInvestment) commented: “We believe the outlook for FY20 to FY21 remains stable, supported by unbilled sales of RM3.8 billion for EcoWorld Malaysia and RM1.3 billion for Eco World International Bhd ( EWI) with an increasing number of maturing projects in Malaysia and overseas.”

Following a meeting with EcoWorld, the research team noted that its management expects FY20 to remain stable, supported by an increasing number of maturing projects in Malaysia and overseas.

EcoWorld registered new sales of RM2.7 billion in FY19 and the company is maintaining its combined two-year ( FY19 to FY20) sales target of RM6 billion.

“For FY20 and beyond, EcoWorld is planning to build wider range of homes with various concepts at affordable prices, suitable for first-time home buyers and the M40 group.

“Recently, the company introduced its ‘ Design2Own’ app that allows customers to create the internal layout of their dream homes, thus increasing options available to cater to a wider audience, especially the younger generation,” it highlighted.

In December 2019, it noted that EcoWorld acquired 200 acres of freehold land in Iskandar Puteri for RM1.67 billion mainly to capture the M40 group with properties priced between RM300,000 and RM450,000.

On top of that, EcoWorld is also planning to launch properties with prices starting fromaround RM400,000 in its existing townships in Malaysia.

For overseas projects, AmInvestment pointed out that particularly in the UK, EcoWorld noted that the property market might have bo omed out and believed uncertainties surrounding Brexit have reduced.

“The UK property market has shown price improvement in the past several months. EcoWorld’s 27 per cent associate EWI expects to hand over RM3 billion worth of properties ( Wardian London, Kew Bridge, London City Island and Barking Wharf) in the UK in 2020.

“As a result, we shall see stronger earnings from JV & associates for EcoWorld in FY20,” AmInvestment opined.

All in, the research house maintained its ‘ hold’ call on the stock.

We believe the outlook for FY20 to FY21 remains stable, supported by unbilled sales of RM3.8 billion for EcoWorld Malaysia and RM1.3 billion for Eco World International Bhd (EWI) with an increasing number of maturing projects in Malaysia and overseas. AmInvestment