MIDF keeps 'buy' on Eco World

KUALA LUMPUR: MIDF Research has kept its "buy" call on Eco World Development Group Bhd as on its new property sales and attractive valuation.

The research house said the property developer's FY20 core net income of RM239.8mil came in above expectations, making up 117% and 148% of its and consensus estimates respectively.

However, the core net income excludes inventories write down and impairment.

MIDF said the earning surprise could be attributed to stronger-than-expected property sales in 4QFY20.

"ECOWLD recorded strong sales of RM1b in 4QFY20, higher than new property sales of RM960m in 3QFY20 as buying interest remains strong after relaxation of MCO restrictions.

"That brought cumulative new sales in FY20 to RM2.3b which is ahead of management new sales target of RM2b," said MIDF.

Eco World's management target to achieve new property sales of RM2.875bil in FY21, which is 25% higher than new property sales of RM2.3bil in FY20.

Eco World is trading at a 68% discount to its latest NTA of RM1.59 a share. MIDF raised its target price to 64 sen from 57 sen previously.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Next In Business News

MMHE bags SapuraOMV Jerun contract�
BIMB raises RM795.6mil via private placement
Grab agrees world's biggest SPAC merger, valued at US$40bil
Bank Negara adds two companies to money services business alert list
Top Glove’s billionaire founder buys stake in education firm
FBM KLCI breaks below 1,600-mark
Bitcoin hits record high of US$62,575
Perodua launches Aruz in Singapore, priced at RM286,409
Grab set to announce deal with US SPAC at US$40 bil valuation
Indonesia's trade surplus seen shrinking in March

Stories You'll Enjoy