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ECOWLD - THE GEM OF PROPERTY

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Publish date: Mon, 28 Mar 2022, 01:19 AM
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Ecoworld to unveil Malaysia's first robot hotel
ECOWORLD - CREATING TOMORROW & BEYOND
 
Eco World Development Group Bhd is a Malaysian property development company. The company has development projects including new townships, integrated commercial developments, luxury high-rise apartments, and green business parks. The company's projects are spread across three economic areas of Malaysia: Klang Valley, Iskandar Malaysia, and Penang.
 
CATALYST
 
1) Reopening of international borders on April 1,bringing back interest from buyers seeking out affordable locations within the region and Industrial products from foreign investor to set up their operations in Malaysia
 
2) Exemption of real property gains tax (RPGT) for house sales starting from the sixth year of purchase (previously taxed at 5%) under Budget 2022.
 
3) For the first four months of FY22, sales in Iskandar Malaysia and Penang rose 194% and 110% respectively while the group achieved RM709mil in sales in the Klang Valley, which represents 56% of its total group sales up to Feb 28, 2022.
 
4) New properties in Eco Majestic, Eco Grandeur and Eco Horizon contributed to the strong sales performance as they cater for the needs of purchasers looking for upgrader and luxury homes.
 
5) AGM has approved for the Bonus Warrant on the basis of one New Warrant for every five existing ordinary shares
 
6) Malaysians see real estate as a hedge against inflation, with 53% of homeowners looking to buy an additional property next year 
 
7)  LaLaport Bukit Bintang City Centre (BBCC) is aiming to achieve an occupancy rate of 80% in August and thereafter 90% by the end of this year. BBCC Development Sdn Bhd, which is a joint venture between Eco World Development Group Bhd (40%), UDA Holdings Bhd (40%) and the Employees Provident Fund (EPF) (20%).
 
8) A new residential component — SWNK Houze — that forms part of Phase 2 of the BBCC development is set to be launched in June. Malaysian Grand Bazaar (MGB) To be soft opened on March 31 2022, a cultural and retail hub that provides a dedicated platform for start-up entrepreneurs to showcase their products. 
BBCC expects RM250m in sales for 2019 | The Edge Markets
 
RISK
 
1) End of Home Ownership Campaign (HOC) on 31 Dec 2021, but did not have any noticeable impact on its sales momentum of Ecoworld
2) High inflation pressure.
3) Potential hike in the overnight policy rate (OPR) could have a negative impact on consumer sentiment and purchasing power, dampening overall demand for properties,but remain low in comparison to pre-Covid levels.
4) Based on Bank Negara Malaysia's January data on loan applications for residential purchases, demand appeared to have started to decline.
 
 
TA View:
EP RM 0.98 - 1.00
SP RM 0.97
RST 1.03 / 1.12
TP 1.14 / 1.25
Dividend: RM 0.04
Bonus warrant: 1: 5 (Ex-Date: 08 Apr 2022)
 
a) Trend: Long & Mid term uptrend
b) Prive above MA5,10, 20, MA50 & 200
c) ADX, RSI and Stoschastic pointing up
d) MACD going to cross up
e) Chart pattern: Cup & Handle
 
 
Malaysia property index
a) Index above MA5,10, 20, MA50 & going to break MA200
c) ADX, RSI and Stoschastic pointing up
d) MACD already cross up
 
 
Holding period: 9 months - 1 years
Potential Return if bought at RM1.00: 
TP1: RM 1.14 + 4 cents dividend = 18% (Not yet include Bonus Warrant)
TP2: RM 1.25 + 4 cents dividend = 29% (Not yet include Bonus Warrant)
 
Other reference:
 
 
 
 
Disclaimer : The above opinion is never intended to be a BUY SELL CALL. The above article purely for education purpose base on observations, chart and data. Thank you.
ECOWLD (8206)
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