Broker Name: UOB Kay Hian
Date of Report: Friday, 13 March 2026
Excerpt from UOB Kay Hian report.
- Eco World Development’s (ECW) 1QFY26 results were in line with expectations, with strong sales momentum driven by local SME demand for EBP7 and Eco Botanic 3 launches.
- Sales for the first four months of FY26 reached RM2.1b, ahead of its full-year RM4b target, while unbilled sales rose to RM5.1b and net gearing improved to 0.17x.
- Quarterly earnings were boosted by data centre land sales to Microsoft and Pearl Computing, with remaining revenue to be recognised in the coming quarters.
- Gross profit margin declined year-on-year, but is expected to improve as more high-margin industrial sales are recognised.
- Management maintains a positive outlook, with strong sales visibility and planned launches targeting strong SME demand segments.
- The report maintains a “BUY” rating with a target price of RM2.70, supported by robust earnings growth expectations and improving recurring income from data centre rentals.
- EcoWorld demonstrates solid ESG credentials, including a significant reduction in GHG emissions and a commitment to local sourcing and strong governance practices.
Report Summary
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