Broker Name: CGS International Securities Malaysia Sdn. Bhd.
Date of Report: March 12, 2026
Excerpt from CGS International Securities Malaysia Sdn. Bhd. report.
- Eco World Development Group Berhad (EWDG) reported a strong 1QFY26 core net profit of RM157.4m, in line with expectations, driven by higher revenue mainly from data centre land sales.
- The group achieved RM2.1bn sales in the first four months of FY26, already 52% of its RM4bn full-year target, with upcoming launches expected to sustain sales momentum.
- Despite lower gross profit margins due to sales mix, the company declared a higher 1Q dividend and is expected to maintain robust earnings, with prudent cost management amid construction cost pressures.
- CGS International reiterates an Add rating with a target price of RM2.62, highlighting strong sales prospects, land monetisation, and attractive dividend yields; key risks include project launch delays and slower sales growth.
Report Summary
- Eco World posted strong profits and sales in 1QFY26, mainly from data centre land sales, and is on track to exceed its FY26 sales target.
- The broker maintains a positive outlook due to robust earnings prospects and dividend yields, with a target price of RM2.62, but notes potential risks from cost pressures and project delays.
Above is an excerpt from a report by CGS International Securities Malaysia Sdn. Bhd. Clients of CGS International Securities Malaysia Sdn. Bhd. can be the first to access the full report from the CGS International website : https://www.cgsi.com
