ECOWLD (8206) : Eco World Development Group Bhd - New kid on the block scores RM3.2bn sales
Target RM7.35 (Stock Rating: ADD)
Eco World's 13MFY10/14 net profit beat our forecast by 12%. As we had noted in last month’s 12MFY9/14 results note, the group’s new sales, including those from assets to be acquired, amounted to a very impressive RM3.2bn, 60% ahead of its RM2bn target. We retain our EPS forecasts, Add recommendation and target price basis of parity with RNAV. But we adjust downwards our target price after updating the RNAV components. Eco World remains one of our top picks in the property sector, with the restructuring exercise, strong new sales and exciting landbanking as key catalysts.
13M results above
13MFY10/14 results beat our forecast by 12%. But investors should not focus on the FY14 results as the assets to be acquired should only start contributing in early 2015. Eco World’s shares are expected to go ex of the split in Jan and should go ex of the free warrants and rights issue in Mar. It did not declare a final dividend, a negative surprise as we had assumed a 1 sen dividend.
Strong new sales
Including property launches from Eco World Sdn Bhd (EWSB), Eco World sold RM3.19bn properties in 13MFY10/14, RM1.2bn or 60% above its target. A massive RM1.84bn of the group's sales came from Johor (Eco Botanic RM1bn, Eco Spring RM397m, Eco Business Park I RM309m and Eco Tropics RM134m) while Klang Valley contributed the remaining RM1.35bn sales (Eco Majestic RM753m, Eco Sky RM565m and Saujana Glenmarie RM32m). Eco World was probably the top developer in Johor in 2014, which exemplifies the group's strong marketing prowess despite the tough market conditions in Iskandar.
Briefing highlights
Eco World held its maiden full-year results briefing today which was attended by over 100 participants. CEO Datuk Chang Khim Wah gave a presentation on the group's performance by its various projects. Eco World is targeting new sales of RM7bn over the next two years, with RM3bn for FY15 and RM4bn for FY16. In our view, these targets may be conservative as the group’s sales momentum remains strong.
Source: CIMB Daybreak - 11 December 2014
Target RM7.35 (Stock Rating: ADD)
Eco World's 13MFY10/14 net profit beat our forecast by 12%. As we had noted in last month’s 12MFY9/14 results note, the group’s new sales, including those from assets to be acquired, amounted to a very impressive RM3.2bn, 60% ahead of its RM2bn target. We retain our EPS forecasts, Add recommendation and target price basis of parity with RNAV. But we adjust downwards our target price after updating the RNAV components. Eco World remains one of our top picks in the property sector, with the restructuring exercise, strong new sales and exciting landbanking as key catalysts.
13M results above
13MFY10/14 results beat our forecast by 12%. But investors should not focus on the FY14 results as the assets to be acquired should only start contributing in early 2015. Eco World’s shares are expected to go ex of the split in Jan and should go ex of the free warrants and rights issue in Mar. It did not declare a final dividend, a negative surprise as we had assumed a 1 sen dividend.
Strong new sales
Including property launches from Eco World Sdn Bhd (EWSB), Eco World sold RM3.19bn properties in 13MFY10/14, RM1.2bn or 60% above its target. A massive RM1.84bn of the group's sales came from Johor (Eco Botanic RM1bn, Eco Spring RM397m, Eco Business Park I RM309m and Eco Tropics RM134m) while Klang Valley contributed the remaining RM1.35bn sales (Eco Majestic RM753m, Eco Sky RM565m and Saujana Glenmarie RM32m). Eco World was probably the top developer in Johor in 2014, which exemplifies the group's strong marketing prowess despite the tough market conditions in Iskandar.
Briefing highlights
Eco World held its maiden full-year results briefing today which was attended by over 100 participants. CEO Datuk Chang Khim Wah gave a presentation on the group's performance by its various projects. Eco World is targeting new sales of RM7bn over the next two years, with RM3bn for FY15 and RM4bn for FY16. In our view, these targets may be conservative as the group’s sales momentum remains strong.
Source: CIMB Daybreak - 11 December 2014
