Maybank IBG Research (17 Jun 2022)
Eco World Development - Value emerges
Shariah Compliant | Real Estate
Profit fell short but sales above; U/G to BUY
ECW’s 2QFY10/22 core net profit of MYR43m (+1% YoY, -30% QoQ) was below expectations but its 7MFY22 locked-in property sales of MYR2.2b were above expectations. Elsewhere, ECW’s net gearing continued to improve to 0.36x in 2QFY22, lowering risk amid a rising interest rate environment. We lower our earnings forecasts by 9-10%. Our TP is largely intact at MYR0.92 TP (-1sen; on an unchanged 0.6x FY22 PBV). Upgrade to BUY. ECW is backed by div yield of 6%.
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