Broker Name: UOB Kay Hian
Date of Report: Friday, 13 March 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Eco World Development’s 1QFY26 results were in line with expectations, with net gearing improved to 0.17x and core PATAMI rising 25.7% qoq and 96.8% yoy on strong revenue growth driven by data centre land sales and robust local SME demand for industrial properties.
- Sales reached RM2.1b in 4MFY26, already surpassing half of its RM4b full-year target, mainly due to successful launches at EBP7 and Eco Botanic 3; unbilled sales climbed to RM5.1b, and the company declared a 2 sen dividend.
- Management emphasized strong demand from SMEs for EBP7, leading to a revised masterplan to allocate more for SME Core segments, while future quarters are expected to see improved margins as higher-margin industrial sales are recognized.
- UOB Kay Hian maintains a BUY rating with a target price of RM2.70, citing solid earnings visibility, fast landbank turnover, and a projected three-year earnings CAGR of 20%.
- ESG highlights include a 36% reduction in Scope 2 emissions since FY19, 100% local sourcing for suppliers, and robust governance standards.
Above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can be the first to access the full report from the UOB Kay Hian website: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc
