PETALING JAYA: Eco World Development Group Bhd
(EcoWorld Malaysia) is poised to achieve record annual property sales for the financial year ending Oct 31, 2026 (FY26), driven by robust residential demand and a landmark data centre (DC) land transaction.
For the third quarter ended July 31, 2026 (3Q26), the developer posted a core net profit of RM111mil on revenue of RM972mil.
UOB Kay Hian (UOBKH) Research noted this brought nine-month core earnings to RM397mil, accounting for 74% of full-year consensus estimates. Unbilled sales stood at a healthy RM5bil, while net gearing remained lean at 0.21 times.
Sales momentum reached RM4.05bil in the first 10 months of FY26.
Coupled with the RM1.01bil industrial land sale to Tera DC finalised in September 2026, total year-to-date sales surged to RM5.06bil, surpassing the group’s initial target of RM4.8bil.
Non-DC growth was driven by a 273% year-on-year (y-o-y) surge in industrial property sales to RM1bil, alongside resilient take-up across mass-market duduk launches and luxury landed series.
Analysts have since revised full-year FY26 sales forecasts upward to RM5.6bil.
“We expect net margin to improve in 4Q26, supported by the recognition of remaining RM300mil to RM400mil of DC land sale proceeds,” said UOBKH Research, maintaining a “buy” call with a target price (TP) of RM2.70.
Kenanga Research reiterated its “outperform” call with a RM2.35 TP, highlighting that 9M26 core net profit grew 34% y-o-y, while net operating cash flow doubled to RM1.86bil.
It added that the pending 20-year, RM4.8bil leasing deal with Pearl Computing secures RM240mil in annual recurring income starting late-FY27.
RHB Research viewed its recent share price weakness as a buying opportunity, keeping a “buy” rating with a RM2.66 TP.
It expects 4Q26 performance to pick up strongly on progress billings from DC land sales and strong southern region demand.
It noted that 10-month property sales had reached RM5.06bil, eclipsing full-year targets, anchored by the recent RM1.01bil Tera DC deal and strong southern region demand.
Supported by RM5.01bil in unbilled sales and a stable net gearing of 0.25 times, RHB Research maintained its earnings forecasts and valuation discount.
Meanwhile, MBSB Research maintained a “neutral” stance with a lower TP of RM1.97 (from RM2.09), trimming FY26-FY28 earnings forecasts by up to 10.4% due to margin compression from elevated costs, higher administrative expenses, and a 26.3% effective tax rate.
Despite margin pressures, the research house underscored 10-month sales topped RM5bil exceeding full-year targets, thanks to DC land deals.
Meanwhile, RM5bil in unbilled sales and Pearl Computing rental income provide 1.7 years of earnings visibility.
