ECOWLD (8206) : Eco World among CIMB Research’s top picks
Eco World among CIMB Research’s top picks
KUALA LUMPUR: Eco World Development Group Bhd remains an Add and one of CIMB Equities Research’s top picks in the property sector, with the restructuring exercise, better-than-expected new sales, and continual landbanking as key catalysts.
The research house said on Friday including property launches from Eco World Sdn Bhd, Eco World sold around RM3.2bil worth of properties in the 13 months ended Oct 31, 2014 which was RM1.2bil or 60% above its target.
“This is very impressive considering that the sales came largely from only six projects - two in the Klang Valley (Eco Sky and Eco Majestic), and four in Johor (Eco Botanic, Eco Tropics, Eco Spring and Eco Business Park 1),” it said.
CIMB Research said on 16 Oct, Eco World said it was interested in subscribing to 30% of Eco World International (EWI), a special purpose acquisition company (SPAC), for RM562.5mil.
EWI is proposing to undertake a listing on the Main Market of Bursa Malaysia sometime in 2015. EWI will focus on overseas property projects, particularly in Australia and the United Kingdom, thus allowing Eco World to concentrate its resources on Malaysia.
The management team of EWI includes Tan Sri Liew Kee Sin, who is also a director of Eco World
Commenting on the results for the 12 months ended Sept 30, 2014, the research house said they were below expectations as net profit made up 53% of its original 13 months ended Oct 31, 2014 forecast.
Eco World changed its year-end from September to October and will be releasing its 13-month results next month.
“Investors should also look beyond FY14 to FY15 onwards, when contribution from the new assets are due to start.
“Eco World’s shares are expected to go ex for the split, free warrants and rights issue sometime in January, a slight delay from the original October/November deadline,” it said.
http://www.thestar.com.my
Eco World among CIMB Research’s top picks
KUALA LUMPUR: Eco World Development Group Bhd remains an Add and one of CIMB Equities Research’s top picks in the property sector, with the restructuring exercise, better-than-expected new sales, and continual landbanking as key catalysts.
The research house said on Friday including property launches from Eco World Sdn Bhd, Eco World sold around RM3.2bil worth of properties in the 13 months ended Oct 31, 2014 which was RM1.2bil or 60% above its target.
“This is very impressive considering that the sales came largely from only six projects - two in the Klang Valley (Eco Sky and Eco Majestic), and four in Johor (Eco Botanic, Eco Tropics, Eco Spring and Eco Business Park 1),” it said.
CIMB Research said on 16 Oct, Eco World said it was interested in subscribing to 30% of Eco World International (EWI), a special purpose acquisition company (SPAC), for RM562.5mil.
EWI is proposing to undertake a listing on the Main Market of Bursa Malaysia sometime in 2015. EWI will focus on overseas property projects, particularly in Australia and the United Kingdom, thus allowing Eco World to concentrate its resources on Malaysia.
The management team of EWI includes Tan Sri Liew Kee Sin, who is also a director of Eco World
Commenting on the results for the 12 months ended Sept 30, 2014, the research house said they were below expectations as net profit made up 53% of its original 13 months ended Oct 31, 2014 forecast.
Eco World changed its year-end from September to October and will be releasing its 13-month results next month.
“Investors should also look beyond FY14 to FY15 onwards, when contribution from the new assets are due to start.
“Eco World’s shares are expected to go ex for the split, free warrants and rights issue sometime in January, a slight delay from the original October/November deadline,” it said.
http://www.thestar.com.my
