Broker: Maybank Investment Bank Berhad
Date of Report: March 13, 2026
Excerpt from Maybank Investment Bank Berhad report.
- Eco World Development (ECW) delivered 1QFY26 results that were in line with expectations, supported by strong property sales of MYR2.1b, on track to meet the FY26 sales target.
- Profit growth was driven by industrial land sales in several business parks, but operating margins declined due to higher contribution from lower-margin high-rise apartments.
- Balance sheet remains healthy with low net gearing of 0.17x, but gearing is expected to rise as construction for a major data center progresses.
- Dividend payments have doubled YoY, with a 2 sen interim DPS declared in 1QFY26.
- Unbilled sales stand at MYR5.1b, providing revenue visibility, and Eco World is expanding its exposure to the industrial segment and building up recurring income from retail assets and data centers.
- The analyst maintains a HOLD rating with a slightly revised target price of MYR2.28 (from MYR2.29), reflecting minor RNAV adjustments.
- Key risks include a prolonged property sector slowdown, higher costs, and regulatory changes, while upside could come from successful new projects and land acquisitions.
Report Summary:
- Eco World Development’s strong 1QFY26 results and robust sales are offset by margin pressures and anticipated higher gearing due to upcoming data center construction. The company is well-positioned for future growth but faces sector headwinds, leading to a maintained HOLD rating and a marginally adjusted price target.
Above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website: https://www.maybank.com/investment-banking
