MBSB Investment Bank Bhd (MBSB Research) has maintained a NEUTRAL call on Eco World Development Group Bhd with an unchanged target price of RM2.09.
The research house reported that the disposal of industrial land in Johor reflects steady value unlocking while supporting a more stable balance sheet outlook.
Analysts said Eco World Development Group is benefiting from continued data centre-driven demand in Iskandar Malaysia, though upside remains limited at current valuations.
Eco World Development Group Berhad has announced the disposal of 49.588 acres of industrial land at its Quantum Edge industrial park in Kulai, Johor, for RM280.8 million to KNBDC Malaysia Five Sdn Bhd, a hyperscale data centre operator.
The transaction marks the final two industrial land parcels at Quantum Edge, completing the group’s latest monetisation cycle in the development.
Analysts noted that the latest deal adds another layer to Quantum Edge’s positioning as a growing data centre hub, with existing players including Microsoft and Princeton Digital Group already present.
Eco World previously sold 123 acres to Microsoft Payments in June 2024 and 57 acres to Princeton Digital Group, highlighting sustained foreign and institutional interest in Johor industrial land.
The latest disposal price of RM130 per square foot is higher than earlier transactions, which were priced at RM75 per square foot for Microsoft and RM90 per square foot for Princeton Digital Group.
Analysts attributed the increase to rising land values in Johor driven by strong demand and improved infrastructure at Quantum Edge, noting that the pricing remains within the broader RM110 to RM160 per square foot range of recent regional deals.
MBSB Research said the transaction is expected to strengthen Eco World’s balance sheet, with net gearing projected to improve to 0.13 times from 0.17 times.
While earnings and new sales may see some uplift from land recognition, the research house maintained its forecasts pending completion of the disposal and reiterated its Neutral stance, adding that much of the positive outlook is already reflected in current valuations.
As of 9.58 am, the stock price slips 0.49% to RM2.04.
