KUALA LUMPUR: Eco World Development Group's 9MFY18 core net income of RM98.7mil came in within MIDF Research's expectations despite making up only 61% and 57% of its and consensus full-year estimates.
The research house said it expects a stronger Q4 performance from the company moving forward due to better contribution from its joint ventures and EcoWorld International Bhd.
Yesterday, Eco World announced a core net income of RM38.3mil in Q3'FY18, 10.9% higher from the preceding quarter due to higher contributions from joint ventures and EcoWorld International.
"The earnings growth in 9MFY18 was mainly underpinned by lower expenses and higher contribution from JV projects (Bukit Bintang City Centre, Eco Grandeur and Eco Ardence) and EWI."
MIDF addded that unbilled sales of RM4.5bil provide less than two years of earnings visibility.
In its property segment, Eco World recorded strong sales of RM1.08bil in the latest quarter versus RM423mil in Q2.
"The strong sales in 3QFY18 were driven by its #OnlyEcoWorld Campaign and EcoWorld Help2Own financing package. Cumulative new sales of RM2b for 9MFY18 makes up 57% of management new sales target of RM3.5b. Management is maintaining its new sales target of RM3.5b," said MIDF.
The research house said it maintained its earnings forecast for FY18/19 with an unchanged target price at RM1.48.
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