(ECW MK/HOLD/RM1.59/Target: RM1.64) EcoWorld reported 3QFY17 net profit of RM26.1m, lifting 9MFY17 net profit to

RM81m, below our expectations. The group raked in sales of RM2.4b from Nov 16 to Aug 17, mainly driven by its Klang Valley projects. Earnings disappointed due to higher-thanexpected tax rate and lower-than-expected margins. We cut our FY17-19 net profit estimates by 15%, 8% and 6% as we adjust our assumptions for taxes and margins. Maintain HOLD. Target price: RM1.64. Entry price: RM1.40.

Source: UOB Kay Hian Research - 15 Sept 2017