Summary
- The share price is down 42% in the last three years, falling well short of the market return. However, it has increased its revenue and profitability over the last three (3) years;
- Housing market in UK on course for busiest year since global financial crisis. More than 1.5mn homes are expected to change hands this year, a staggering 45% more than in 2020, with estimated total transaction value of £461bn;
- GBP rises to almost 5-year high against RM. And this is the highest since its listing back in April 2017. This development bode well with the prospects of EWINT as bulk of its revenue is in GBP
- The Company growth model, Build to Rent was always destined to dominate the long-term vision of developers and residents alike, but the pandemic has now accelerated that process of evolution;
- Hong Kong may see about 13,100 to 16,300 households move to the U.K. via their British National (Overseas) visas in 2021;
- As at 3 June 2021, more than 40% of the UK population has been fully vaccinated, with 60% of its population received at least a dose. The UK will offer first doses of the COVID-19 vaccine to people over age 25 from 2nd week of June 2021, hence, is in the process of completing its herd immunity soon;
- The shareholders can envisage bumpy dividend payments for FY2021 and FY2022 respectively as bulk of the projects during the IPO has been completed and delivered, including Wardian and Yarra One. The Company is in the midst of completing the last piece of EG and now entering into 2nd phase of growth;
- The Company’s shareholders are not prone to active buying and selling stocks. This is characterised by its institutionalised and owner-oriented shareholdings’ structure, collectively owning 2.047bn or 85.3% of the issued shares. As a matter of fact, the free float (i.e. shares that are circulating for the public shareholders) is only 325mn or 14.7% of the issued shares, which is low in liquidity. This stock will have a low beta and it will show a stable growth with a low volatility. Warren Buffett said that he likes "a business with enduring competitive advantages that are run by able and owner-oriented people".;
- Technical analysis indicates the formation of bullish pattern; Looking into first and second TPs of RM0.61 and RM0.645 respectively. It has been on consolidation mode since 3rd week of March 2021, hovering around RM0.54 to RM0.55 range. Point to note that, it has shown a strong support and resilience to the negative news despite the multiple announcements of lockdown measures by the Government of Malaysia;
Conclusion
The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. Better days may come sooner than expected.
Disclosure: I wrote this article myself, and it expresses my own opinions and not a buy or sells call. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
https://klse.i3investor.com/blogs/TimelessInvestment/2021-06-06-story-h1566076036-EcoWorld_International_Berhad_EWINT_The_Rosy_Case.jsp
