The talk of a merger between EcoWorld Malaysia and UEM-Sunrise. This merger news received much attention when it first appeared. Many commentaries on both the bad and the good and also all those juicy rumours too. Anyway, all these can be considered ended. EcoWorld Malaysia chairman Tan Sri Liew Kee Sin announced that the talk has ended. He said, “The cessation of talks on the proposed merger will enable EcoWorld Malaysia to actively pursue other corporate proposals that may be more complementary to our present growth plans and strategies.”
Article in thestar.com.my Tan Sri Liew shared that within the month of November and December of 2021, EcoWorld Malaysia achieved a very strong start with RM500mil sales already achieved. Liew shared that the group would now be able to focus on the group’s own business plans for FY2021 which includes a sales target of RM2.87bil for EcoWorld Malaysia which is 25% higher than the actual RM2.30bil sales in FY2020. Do refer here for the full news. Article in thestar.com.my
3 things to note in the article for our understanding.
#1 Merger Talk has ended but Tan Sri Liew said this about EcoWorld Malaysia, “certainly remain open to the possibility of future collaborations with UEM Sunrise, should another opportunity arise.” There’s no such thing as a firm no in the corporate world. It’s only whether the merger could achieve a win-win situation for both.
#2 The property market is definitely not quiet if we look at EcoWorld’s achievement for November and December. Do note that they have a sales target of RM2.87 billion for FY2021 which starts in November 2020. In other words, the target is around RM239 million every month and EcoWorld is ahead of its target.
#3 It has a higher target for FY2021 versus FY2020. This is a good sign as well or perhaps FY2020 was indeed not such an awesome year? Anyway, a higher sales target is definitely a positive sign for the company and of course the property market as a whole. Do note that we are not sure if there would be changes since MCO 2.0 has started and may continue for a few weeks more.
A positive sign does not mean we should buy that property we were viewing just a while ago. It has to meet our expectations. Our expectations meanwhile must not be based on what that professional sales person told us. It has to be based on understanding of the property price of similar property in similar area. Buying at a high price, regardless of the developer name will still not save us. All the best in your property investment journey. Need some reference? Article here: Start Strong. your Property Investment Journey
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