In an article in TheStar, Eco World president and CEO Datuk Chang Khim Wah said the following about Eco World. “The market has been challenging, but the yield for Eco World is good and commendable. Regardless of any upturn or downturn, we will sail smoothly for the next two years, buttressed by our strong unbilled progress billings.” So, to all those who bought Eco World’s projects, perhaps it’s now time to think about the next one since your current one should be smooth sailing. For FY16, The Eco World brand registered total sales of RM6.07bil in developments within Malaysia and international markets. Eco World sold RM3.4bil while the rest of about RM600mil was from its 27% pro-forma share in Eco World International Bhd (EWI) which is en route to a listing.
Eco World saw its net profit surging by 195% to RM129.3mil compared to FY15. During the same period, revenue rose by 49% to RM2.5bil. As at currently, the gross development value (GDV) of Eco World’s ongoing projects stood at RM87.5bil, with 64% of it within the Klang Valley. Slightly more than half would be developments that it categorised as mass development or upgrader products. These properties range from RM500,000 to RM1mil. There are two more projects to be unveiled in mid-2017. They are Eco Horizon in Penang and Eco Forest in Semenyih. Chang also shared that the company had no plan to increase its landbank holdings. As for the listing of Eco World International, Chang said that it is targeted to be in the first quarter 2017. The shareholders include GuocoLand Ltd with 27 percent stake in EWI post-listing as a strategic investor and a full-fledged partner. Eco World will hold 27 percent while Eco World chairman Tan Sri Liew Kee Sin will hold a further 10% direct stake in EWI.
In case you are not ready to buy Eco World projects but you like the company, this is what CIMB Equities Research said about them. “Rising profitability could be a key potential re-rating for Eco World’s share price.” It is thus retaining its Add call for Eco world Development Group Bhd. CIMB Research also said that while the earnings prospects for Eco World over the next three years would be lower than the 75% net profit compounded annual growth rate (CAGR) it achieved in FY13-16, its numbers could still be the strongest among all the developers in its coverage. If you want to read in full what they say, it’s here. I do not own any properties by Eco World and has sold my small number of units earlier. Perhaps time to get a few more as fixed deposit? Happy following.
written on 9 Dec 2016
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