Maybank Investment Bank Bhd (Maybank IB) predicts that Eco World Development Group will surpass its sales target of RM3.5 billion in the financial year 2023 (FY23). In the first seven months of FY23, Eco World has already achieved RM2.4 billion in property sales, which accounts for 69% of its sales target.
Maybank IB stated that Eco World’s core net profit of RM62 million in Q2 FY23 was as expected, but its sales target exceeded expectations. The strong sales performance was driven by the sale of landed residential properties (41% of total sales) and industrial properties (35%).
Forty percent of the RM1.2 billion residential sales came from high-end homes priced above RM650,000 per unit, while the remaining 60% came from properties below that price range, targeting upgraders in the first half of 2023.
As of April 2023, the unbilled sales for Eco World’s Malaysia projects amounted to RM4.23 billion, which is 1.4 times the projected revenue for FY23. Maybank IB also mentioned that EcoWorld is actively seeking new land in the Klang Valley, Penang, and Johor, with support from its healthy balance sheet.
Maybank IB slightly adjusted its earnings forecasts for FY23-FY25 but maintained its target price of RM1.02, recommending a “Buy” rating for the stock.
