PETALING JAYA: Eco World Development Group Bhd
(EcoWorld Malaysia) is set to benefit from its expanding presence in the Puncak Alam corridor in Selangor, with long-term sales growth and resilient earnings momentum from both its residential and industrial projects, according to CGS International (CGSI) Research.
Following a site visit to the Eco Grandeur township and Eco Business Park V (EBP V) industrial park, the research house came away “incrementally positive on the projects’ long-term outlook”.
CGSI Research highlighted that Eco Grandeur and EBP V have collectively achieved RM4.4bil in cumulative sales as of Oct 31, 2024, averaging around RM550mil annually since their debut in November 2016.
“As of May 2025, Eco Grandeur still has 767 acres of undeveloped land bank with a remaining gross development value (GDV) of RM7.6 bil, of which we estimate a mix of 80% residential and 20% commercial,” the research house noted.
“Notably, five residential precincts have been launched to date, with three fully sold, underscoring sustained demand in the Puncak Alam corridor.”
CGSI Research also pointed to the vibrancy of the township’s commercial segment, supported by a strong tenant mix including Jaya Grocer, Chagee, Starbucks, The Coffee Bean & Tea Leaf, Damascus, and Public Bank.
“We believe the growing commercial ecosystem should help to elevate the township’s liveability and sales growth,” it added.
Meanwhile, over at EBP V, the research house expects earnings to pick up pace over the coming quarters, “backed by robust progressive billing for the 58-acre land sales to Google before reaching its project tail-end”.
To recap, in late February, EcoWorld Malaysia inked a deal to dispose of 58 acres of leasehold industrial land in EBP V to Google-affiliated company, Pearl Computing Malaysia Sdn Bhd, for RM266.1mil.
“To put this into perspective, we expect land sales to contribute RM47mil and RM37mil to group profit after tax (PAT) in financial year 2026 (FY26) and FY27 – accounting for about 6% and 9% of core earnings, respectively,” it noted.
The remaining undeveloped land bank in EBP V is limited to just 39 acres – with an estimated potential GDV of about RM200mil.
Additionally, CGSI Research noted that the built-to-lease data centre is poised to offer a more sustainable income stream, with annual PAT potential projected at RM80mil to RM180mil once fully operational in FY27.
“Management also remains upbeat, citing resilient industrial park demand despite external headwinds, including higher US tariffs and expanded sales and service tax coverage on construction and leasing services.”
Furthermore, the research house has reiterated its “add” call on the stock, with an unchanged target price of RM2.58 a share.
“We like EcoWorld Malaysia for its robust earnings outlook in FY25 to FY27, further land monetisation, and compelling dividend yields,” it said.
