Highlights

MIDF Sector Research

Author: sectoranalyst   |   Latest post: Fri, 22 May 2020, 10:50 AM

 

Eco World Development Group - JV With PowerChina Group

Author:   |    Publish date:


INVESTMENT HIGHLIGHTS

  • JV with PowerChina Group to develop industrial park
  • MOU with PowerChina to jointly bid for infrastructure projects in Malaysia
  • Positive on the proposed JV
  • Earnings forecasts maintained
  • Maintain BUY with an unchanged TP of RM1.25

JV with PowerChina Group to develop industrial park. Eco World Development Group (ECOWLD) has signed a conditional joint-venture (JV) with PowerChina Group to jointly develop 117.35 acres Eco Business Park V, Phase 2. The JV company, known as EcoWorld PowerChina Business Park Sdn Bhd will purchase 117.35 acres of industrial land from Paragon Pinnacle Sdn Bhd (60% owned by ECOWLD and 40% owned by EPF) and jointly develop the land into an industrial project. Eco World PowerChina Business Park Sdn Bhd will be 60% owned by PowerChina and 40% owned by Paragon Pinnacle Sdn Bhd.

MOU with PowerChina to jointly bid for infrastructure projects in Malaysia. ECOWLD has also inked a Memorandum of Understanding (MOU) with PowerChina Group to jointly bid for infrastructure projects in Malaysia. The MOU may enable ECOWLD to take advantage of and leverage on the connectivity available and creating new business opportunities under China’s Belt & Road Initiative.

Positive on the proposed JV. We are positive on the proposed JV with ChinaPower Group as the JV could benefit business park project of ECOWLD by leveraging on extensive network of PowerChina’s clients who may be interested in investing in industrial real estate projects in Malaysia. Note that Eco Business Park V Phase 2 is complementary to the overall 518-acre Eco Business Park V (GDV: RM3.7b) located in Puncak Alam which is ECOWLD’s first business park in the Klang Valley.

Maintain BUY with an unchanged TP of RM1.25. We make no changes to our earnings forecasts. Our TP is maintained at RM1.25, based on 45% discount to RNAV. We maintain our BUY recommendation on ECOWLD as valuation of ECOWLD is attractive at 43% discount to latest book value of RM1.48 per share.

Source: MIDF Research - 17 Jun 2019

Share this
Labels: ECOWLD

Related Stocks

Chart Stock Name Last Change Volume 
ECOWLD 0.40 -0.015 (3.61%) 21,876,100 

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View candlestick stock charts with Technical indicators
MQ Affiliate
Be rewarded by being an MQ Affiliate
 
 

308  664  417  518 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 DSONIC-WA 0.585+0.09 
 VELESTO 0.16-0.005 
 KNM 0.205-0.015 
 ARMADA 0.215-0.015 
 GDEX 0.37+0.05 
 DSONIC 1.55+0.21 
 GPACKET-WB 0.35+0.04 
 AGES-PA 0.03+0.005 
 MEDIA 0.16+0.005 
 MSM 0.665+0.015 

FEATURED POSTS

1. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
2. MQ Affiliate – A smarter way to earn more rewards MQ Trader Affiliate Program
3. MQ Affiliate – How to become an effective affiliate MQ Trader Affiliate Program
4. MQ Affiliate – Upgrading to Affiliate Partner MQ Trader Affiliate Program
Partners & Brokers