Broker: Maybank Investment Bank Berhad
Date of Report: September 16, 2025

EWICAP’s Strategic Pivot: Navigating a Challenging UK Property Market and Shifting Towards Growth

Overview: EWICAP Readjusts in Face of UK Property Headwinds

Eco World International Bhd, now rebranded as ECWI Capital Bhd (EWICAP MK), is recalibrating its business approach amidst persistent challenges in the UK property market. Following a recent on-site review of its key London assets and a strategic reassessment, the group is now considering significant changes, including potential landbank disposals and a sharpened focus on acquiring yielding assets for recurring income. Collaborations in Malaysia are also on the horizon as the company steps away from its previous high-dividend payout model and prepares for a new growth phase.

London Portfolio: Project Updates and Market Realities

EWICAP’s London assets include three primary developments:

• London City Island (LCI): 75% owned, with residential units fully sold at GBP800-900 psf. Remaining commercial units are nearly sold out.
• Wardian: 75% owned, with all residential units sold at GBP1,100-1,200 psf. Commercial units are also close to being fully sold.
• Aberfeldy (Phase 1): 35% owned, with units sold at GBP750 psf. Phase 2 has secured planning approvals, but no launch date has been set given current market conditions.

Despite these sales, the group remains cautious. New regulatory changes, especially building safety rules, have necessitated revisions and re-applications for approvals on other UK projects, such as Woking (70% owned, GBP352m remaining GDV) and Kew Bridge (GBP243m). EWICAP is open to selling these sites post-approval to attract buyers, with the three UK landbanks collectively valued at MYR609m (effective stake).

Strategic Shift: From Dividends to Growth and Recurring Yield

EWICAP has officially moved away from its prior strategy of high dividend distributions. Instead, it intends to redeploy capital into:

• Property development projects in Malaysia
• Yield-generating overseas assets for quicker recurring income

This strategic pivot is underscored by a non-binding framework agreement with JLG (Jland Group, a Johor Corporation subsidiary), targeting cross-investment opportunities. JLG is eyeing EWICAP’s Macquarie Park project in Sydney, while EWICAP explores JLG’s 300-acre industrial park in IBTEC, Sedenak, within the Johor-Singapore Special Economic Zone.

Share Price and Ownership Structure

• Current Share Price: MYR0.26
• 12-Month Target Price: MYR0.41 (+58%)
• Major Shareholders:
  • Eco World Development Group Bhd: 29.0%
  • Liew Kee Sin: 11.5%
  • Permodalan Nasional Bhd: 5.4%
• Market Capitalisation: MYR624.0M (USD148M)
• Issued Shares: 2,400M
• Free Float: 51.4%

Recent and Projected Financial Performance

Key Observations:

• Revenue is expected to dwindle significantly from FY25 onwards, reflecting a pause in new launches and a focus on clearing unsold inventory.
• Core net profits remain negative throughout the forecast period, albeit with narrowing losses as dividend payments stop and capital is redeployed.
• Dividend yields have dropped to zero following the strategic pivot away from high payouts.
• Company remains in a net cash position, providing flexibility for future asset acquisitions or development moves.

Strategic Collaboration: EWICAP and JLG

EWICAP’s planned tie-up with JLG is set to be formalized by November 2025. This collaboration is centered on cross-investment:

• JLG is interested in EWICAP’s Macquarie Park project in Sydney.
• EWICAP is evaluating JLG’s 300-acre industrial park project in IBTEC, Sedenak, Johor-Singapore Special Economic Zone.

This cross-border partnership is designed to provide new growth avenues for both parties and allow EWICAP to diversify beyond its traditional overseas residential development focus.

Market Drivers and Risk Factors

Upside Catalysts:

• Potential yield- or RNAV-accretive asset/land acquisitions, especially if the JLG collaboration proceeds
• Weaker GBP or AUD, which may stimulate foreign property purchases in the UK and Australia
• Any policy easing or interest rate cuts in the UK and Australia

Downside Risks:

• Further policy tightening in the UK or Australia
• Rising construction costs and stricter property regulations
• Country and currency risks, which can impact project returns and valuations

ESG Performance and Governance Structure

ESG Score: 62/100 (Above average)
Key ESG Highlights:

• Anti-Bribery & Corruption Policy in place; Board signed Integrity Pledge in 2023
• New Health, Safety & Environment system at EcoWorld London; construction waste management highly effective (98% diverted from landfill)
• Contractors required to use 100% green energy and recycled materials
• Exploring renewable energy and heat networks for future projects
• Board diversity: 30% female representation, 50% independent directors
• No reported cases of corruption, bribery, or whistleblowing incidents in FY23
• 39% of workforce are women; strong focus on local procurement (87% in EcoWorld London, 65% in EcoWorld Ballymore)

Balance Sheet and Cash Position

As of FY25E, EWICAP’s balance sheet remains robust:

• Cash & Short-Term Investments: MYR434.6m (FY25E)
• No interest-bearing debt (short or long term)
• Net cash position: maintained throughout the forecast period
• Shareholders’ Equity: MYR1,281.9m (FY25E)

Key Takeaways for Investors

• EWICAP is undergoing a significant strategic transformation, shifting from high dividends to growth and recurring income.
• The company’s UK and Australian property markets remain tough, driving a focus on asset sales, reallocation of capital, and new market entry in Malaysia.
• Collaboration with JLG could unlock new value, especially through cross-border project participation.
• Sound ESG practices and a strong cash position provide a solid platform for EWICAP’s next phase of evolution.
• Despite near-term losses, the group’s proactive strategy and strong balance sheet position it for medium- to long-term recovery and growth.

Historical Recommendations and Target Price Movements

Conclusion: EWICAP Prepares for a New Growth Cycle

EWICAP stands at an inflection point. With UK project headwinds and a strategic pivot to recurring income and Malaysian market entry, the company is laying the groundwork for sustainable long-term growth. Investors should watch for progress on landbank sales, the formalization of the JLG partnership, and the company’s next moves in Malaysia and beyond.