2015年4月9日星期四

Eco World Development Group  may fall further after breaching
the MYR1.77  level  in  its  latest  session.  Traders  may  expect  further
weakness if the stock stays below  this  level  in the near term, 
with the next support level anticipated at MYR1.54. The stock may move sideways
  or rebound further  if  it  recovers back above the MYR1.77level, 
while the bearish bias may be removed if the MYR2.00 level is surpassed.

Source: RHB

Raring to go
• 1QFY15 results within expectations
• RM621m sales secured as at Feb15; on track for
RM3bn sales in FY15
• RM3.1bn unbilled sales to drive earnings growth
• Maintain Buy and RM2.35 TP (ex-rights)
Highlights
Results in line
• ECW reported 1QFY15 earnings of RM3.1m, on the back of
RM158m revenue. This includes contribution from Eco
Majestic, Eco Sky, Eco Botanic and Eco Business Park 1
effective 8 Jan 2015, when the massive corporate exercise
to acquire the development rights of eight projects for
RM1.8bn became unconditional.
Outlook
Sales going strong
• ECW achieved RM621m sales as at Feb15, of which 53%
came from Iskandar Malaysia (IM). This underpins the
unrivalled market confidence towards ECW’s launches,
which continue to be well-received despite the challenging
market at IM. Meanwhile, unbilled sales stood at RM3.1bn,
offering strong earnings visibility
• The Group will be launching four new projects in FY15: Eco
Sanctuary@Shah Alam (RM8bn GDV), Eco Terraces@Penang
(RM340m), Eco Tropics@IM (RM3.4bn) and Eco Business
Park 3@IM (RM2bn). We believe it is on track to achieve
RM3bn sales target this year given its focus on lifestyle
township development, where the initial registrations for its
upcoming launches have received overwhelming response.
• With the completion of the acquisition of development
rights, ECW currently owns 4,950 acres of land bank worth
RM55bn GDV which are strategically located in property
hotspots in the Klang Valley, Penang and Johor.
Valuation
We retain our RM2.35 TP, which is based on 20% discount to
our RNAV (prior to 20% placement). We continue to like ECW
for the proven and impeccable track record of its key senior
executives, who have helped the developer to establish strong
branding among property buyers.
Malaysia Equity Research
20 Mar 2015