Vin,

When it was 0.70 , what was the size of GDV?
Now how many times more? It is a completely different company with massive landbank and years of GDV ahead.
When it was 0.70, it was a small not well known company called Focal Aim. Now almost all talented stuff has moved from SPSetia to Ecoworld. There are 3 factors, I consider most important in property investments. Location, Quality (Brand), Management. Ecoworld tick all the boxes.
If you use PE to value this share, you will never get it. The TTM didn’t all include Revenue from Ecoworld Sdn. In quarter 01-31, only very small proportion was included. The most recent quarter, you see sudden increase in revenue, that’s because this is the first time Ecoworld Sdn projects are included after all the corporate excericse. See the figure at the bottom

If the trend continue like this and 7bn sales as targeted, you will see a sudden drop in PE. Don’t forget the 30% ownership of EWI and that will suddenly improve the revenue and that is about 135m revenue for the next 5 years. Recent private placement’s price was 1.62, at current price, it’s a no brainer and a steal!

Quarter Revenue
2015-04-30 417,822
2015-01-31 158,027
2014-10-31 36,035
2014-09-30 35,633

X
ecoinvestor If they are on target to make 7billion sales on top of owning 30% of ewi, what will be the PE?
Wondering why EPF buying such high PE counter? To answer this question, you need to read more. Still want to stick with spsetia? Ecoworld will take over and overtake spsetia sooner than you think :-)

Good news!! Collect As many while you can. Check announcement ;-)

7-8 days count down from now. We shall see for the first time the result from Ecoworld Sdn incorporated into Ecoworld.
They will be the first gun shot for the price rally and preparing for the SPAC. It must be good.
According to news, SPAC will be created in second half. They need to show the result first for investors and I believe this coming two quarter results will be the key.
Good luck!! At this price, it is 4 sen below EPF 1.62 price. Good bargain ;-)

Kaisiang, epf is one of the biggest fund on the market. Once they start buying the shares, you have confidence the price is supported. For example when epf start buying inari, you can see their prise has steadily rise. The percentage they buy is quite substantial.
Local fund is here to stay but foreign fund come and go.

http://klse.i3investor.com/servlets/anpth/1074292.jsp
Look !! Who is buying and their percentage.!!

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4741325

Today, ecoworld has achieved another mile stone. They have completed the private placement issued at price 1.62. This magic number is very important and is a setting stone (support price) for future enhancement. The private placement has few aims:
1. Fullfiling the requiement of bursa for the public shareholding spread. (A too low free float can cause the stock to be delisted)
2. Gathering fund to fullfil their ambitions for their targeting sales in next ten years. 7 billion target is set for next two years.
3. As some has pointed out, EWI SPAC will be the next milestone.
The price adjustment is inline with the dilution of the private placement and there is nothing to worry about. We will see massive actions in the 3rd quarter.
Don't be moved by noises and this share you will need to keep for mid term, minimum 6 month.

Target 2.45 set.
robert probably typo, he thinks 2.5 but type 1.5 :-)


KUALA LUMPUR: Shares of Eco World Development rose in early Monday trade after it completed its corporate exercise which included a 20% private placement.

At 9.36am, it was up two sen to RM1.78. There were 83,800 shares done at prices ranging from RM1.76 to RM1.79.

The FBM KLCI was up 5.28 points or 0.29% to 1,812.93. Turnover was 266.23 million shares valued at RM134.56mil. There were 258 gainers, 146 losers and 213 counters unchanged.

CIMB Equities Research is retaining Eco World as an Add and one of the top picks in the property sector.

The research house said the potential re-rating catalysts include strong sales and earnings growth. It has a target price of RM2.45, which is 38.2% above the last traded price of RM1.77.

“With the completion of the 20% private placement, Eco World's major restructuring exercise is now complete. The enlarged group has over 5,000 acres of landbank with gross development value (GDV) of RM65bil and a post-placement gearing of around 0.5 times for FY15,” it said.

Last Friday, Eco World announced it had undertaken the placement of 20% new shares or 394.044 mil units at RM1.62 each. The placement was oversubscribed by 1.41 times. The RM638.4mil proceeds will be used for landbanking and investments. The new shares will be listed on May 19.

Lol

The price drop is for adjustment to the 20% private placement. It is 1.41 times over subscribe. This is the final corporate exercise. From now on, it will be ready to fly. You will hear about SPAC next. Now it is the best time to enter.

dividend is a small thing. Who wants the 1 cent dividend. This is a growth stock. What we need is to see the price surge to at least 2.5. Few days up few cents already cover your few years dividend. If you care about dividend, better buy digi. The company has gather enough land to develop for next 10 years. Within 3 years, we will see that it is a giant property company not only in malaysia but in the world.
Sit tight!!

(The Edge) Eco World to build Eco Marina in Penang
Eco World Development
Group Bhd
(April 17, RM1.86)
Maintain buy with a target price of RM2.35: Eco World Development Group Bhd (ECW) announced that it had received a letter of award (LoA) from the Penang Development Corporation for the proposed acquisition of 299.64 acres (121.26ha) of 99-year leasehold land for RM730.93 million (at RM56 per sq foot [psf]) for mixed development, and proposed leasing of a 150-acre piece of land for 30 years (with 30-year renewal option) for the development of an international standard golf course for RM65.34 million (at RM10 psf).

ECW will be planning a major township development, Eco Marina, worth RM10 billion with 60% residential and 40% commercial properties with water-fronting facades.

While the proposed land acquisition at RM56 psf may appear high, this could be due to the 2.5km coastline that results in the premium pricing.

Nevertheless, the total purchase consideration of RM796 million only accounts for 8% of Eco Marina’s gross development value which underscores ECW’s confidence in rolling out a successful township development.

ECW’s board is currently reviewing the detailed terms of the LoA and more information on the deal will be furnished upon its acceptance.

Assuming that Eco Marina is developed over 15 years, it will increase our revalued net asset value (RNAV) by RM0.25 or 8% of our RM2.97 RNAV.

We continue to like ECW for the proven and impeccable track record of its key senior executives, who have helped the developer to establish a strong branding among property buyers.

well done peacemaster! keep up your great work :-)

As you can see from the comments, many people want to buy this counter :-). Shark will not be around if there is no food. Do you think people are so free to put negative comment here daily?
There is only for one reason.
Hold tight, the next biggest event will be SPAC.

For those think that price has dropped, let me show you some scenario.

Let's say you bought at 2.4 before right issue

2.4
2.4
You pay 1.2 (for 1 right issue)
You paid RM6

After right issue you own 3 shares at today closing price
1.79 * 3 = RM 5.37
Warrant = 0.68 * 0.8 =0.544
Price now =5.37+0.544 = 5.914 , you made a lost of 0.086

If your purchase price was 2.5 you make a lost of 0.28

If you sold the warrant earlier, you should make some profit.
Anyway, don't be distracted by all these noise of dropping. The above is only showing you that market is adjusting the price to the previous level before right issue begins. Ecoworld fundamental has not changed a bit except the future prospect and plan are still on track.

Anyway, masterpeace information for uk is in January. UK Government has introduced new measure to help first time buyer and that will push up the price further. London house price growth is slower but still at ridiculous speed. Some are registered 29% in east london for first quarter and all property that Ecoworld-Ballymore joint venture are located at East.

http://www.theguardian.com/money/2015/mar/27/uk-house-price-growth-slows-for-7th-month-in-a-row-says-nationwide

Australia house price average may be slowing down but not Sydney. Sydney is like London that always buck the trend because of high demand and low in available land

http://news.domain.com.au/domain/real-estate-news/sydney-house-price-growth-highest-in-six-years-20150401-1mcgqm.html

Mother and father died also come out. Really desparate. Running out of ideas?
Anyway, check account and get free ecoworld warrant and see the price!!! No need to wait for 5 ysars to get 2.68. You will see it soon after all corperate exercise is completed.

UK house price dropping? Lol. Ecoworld UK project is all in London.
Check the annual house price increase in London area. Even half of prediction, Ecoworld still laugh all the way to bank. Do you know UK government want to 50,000 houses in London?

http://www.thisismoney.co.uk/money/mortgageshome/article-1671748/House-prices-What-expect-news-predictions.html

By the way, do you know right issue is over subscribed by 4.88 percent!!?

http://klse.i3investor.com/blogs/Ecoworld/73062.jsp

Ecoworld is in full force. Datuk Voon also join officially.


KUALA LUMPUR (Mar 19): Tan Sri Liew Kee Sin has been redesignated as Eco World Development Group Bhd (Financial Dashboard) non-independent and non-executive chairman.

In statements to the exchange today, property developer Eco World (fundamental: 0.95; valuation : 0.3) said Liew's appointment starts tomorrow.

Liew, currently a director in Eco World, will take over from the company's chairman Tan Sri Abdul Rashid Abdul Manaf.

Eco World said Abdul Rashid would remain on the board as founder, and a non-independent and non-executive director.

Meanwhile, Datuk Voon Tin Yow has been appointed executive director while Datuk Noor Farida Mohd Ariffin was appointed independent and non-executve director.

Voon and Noor Farida's appointments will take effect tomorrow.

Today, Eco World shares rose one sen or 0.5% at 12:30pm to settle at RM1.94 for a market capitalisation of RM3.82 billion.

The stock had gained 13% this year versus the KLCI's 3% rise.

The reporting quarter has changed. We can take December that is as close as Jan this year and can see the scale of its revenue changes
from December last year to the current quarter from 22,620 to 158,027
and revenue PBT from 1,970 to 5,637 y-o-y

and Revenue q-o-q from 36,035 to 158, 027
and PBT q-o-q from from 2,823 to 5,637
I am sure you don't need me to tell you good or bad.
See how the market react to the result once result out at last few hours :-)

After right issue and more asset is injected and the SPAC, it will be more exciting.

http://malaysiaretailnews.blogspot.co.uk/2015/03/the-star-revel-in-embrace-of-nature.html?m=1

Subscription form is here http://announcements.bursamalaysia.com/EDMS/subweb.nsf/all/6BD3CF737BDC1F8E48257DFF000FAEB1/$File/ECOWLD%20-%20NPA%20&%20RSF%20Form.pdf

Many here also blindly comment without looking the reason behind the right issue and simply quoting text books answer.
Inari has right issue recently, are they in great debt? Is Ecoworld in great debt? Right issue is a vehicle to gather fund if the Co want to expand massively.


The right issue of Ecoworld is for gathering fund to buy massive landbank and their project from Ecoworld Sdn Bhd that has been run successfully.
When these land and project become part of Ecoworld, the profit of Ecoword Bhd will be increasedsignificantly and produce GDAV for many years to come
and make Ecoworld an international player.

Part of the fund gather by right issue and private placement is also for prepration for buying 30% stake in Ecoworld SPac that has yet to be listed.
Once SPAC is listed and bought by Ecoworld, part of the money is used to buy 75% of the recent announce Ballymore's project in London. The revenue that can made in this project
is already more than what ecoword currently can make. Do some research and you will find there is a lot of exciting news ahead!!


Today you have 1 Ecoworld warrant right if you own two shares.
Let's say you bought at 2.5
You paid rm5
at today's closing price
you have 2x1.95+1.05 =4.95
Currently you made a lost of 5 sens.
If you decide to pay 1.2 to buy mother shares you have 0.8 free warrants.

Yes property may not be good in Malaysia in short term. Ecoworld has already diversified their portfolio to London and Australia. Their SPAC will gather more landbank elsewhere in the world.
This is the only property counter that I choose to invest if GST is your worries!!

http://klse.i3investor.com/blogs/cimbresearchklse/71935.jsp
People who subscribe to right issues has free warrant. With good warrant price, do you think people will subscribe?
Target price for mother is 2.6. Do you think it is attractive?
Why are people willing to pay such high price?
You need to find out what is the big thing next after all this exercises. Watch for news in coming two months. Have you heard about the SPAC?


FYI ecoworld result will be out on 10 of March.

Mohd Iqbal , when people find it out, it will not be this price. Many people see the PE, then just skip it without any studies. I suggest you read the top 10 headlines in
http://klse.i3investor.com/servlets/stk/8206.jsp

Ecoworld will not give you high dividend. There are a lot of other high dividend yield share if you like dividend. I like both.
Ecoworld will give you rm0.65 rise ,mahsing may give you dividend but little growth. Which one is better? next few months we will see.

Madd, what a good news. Let's those doubt to continue to do so.
We don't want to see Ecoworld to be bluechip as bluechip price rarely rise. Ecoworld is growth stock, it will exceed most of the bluechip stock as its target is not in Malaysia alone

For those newbies, today is right issue ex date. Just like you getting a bonus shares.
For example if you buy a share with rm1 if it give 1:1, on the ex date, the share price will beceom rm0.5 but you're still owing the same value 2x0.5 = RM1.

What had happened today is adjustment for the right issue.
Let say you bought 2 shares at 2.40 = 4.8 and you will have 1 right to buy share at 1.2
So you end up paying 4.8+1.2 = rm6 for 3 shares
and if you divide it by 3 , you cost is adjusted to 6/3 = rm2. and you can deduct more for the free warrant. So in summary you lost nothing today.

If you decide not to subscribe and sell your right, you will be slightly worse off because you lose the free warrant.

Make sure you subscribe and you will not be regretted as your subscription is also give you free warrant.

We all eat shark fin soup soon :-). I am just joking. Don't kill shark, they are nearly extinct. Thanks vookyoke.

1 is starting date for shareholder to sell their rights if they don't want to subscribe
Check 3. http://www.investopedia.com/articles/stocks/05/062905.asp
This one you need to ask your remisier, if he don't answer, change :-)
2. Is stop/cease date of 1.
3. Announcement date of how many share holder has subscribe the right issue as not everyone want to pay. It will tell you how there are going to deal with the excess (left over rights).
4. Is the date your right issue shares become listed.

cheeseburger, that's because they look at the past. They are not aware coming two years, ecoworld sdn bhd profit will flow in to ecoworld. That will be explosive growth . Read the latest annual report. So much is going on
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1884005

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1880721

i think the list of event date is in the annoucement

Yes to your first answer.
Second answer, price will be decided when listed. If the warrant is priced attractively and mother share is performing well, then more people will buy warrant and potentially your warrant will give you more profit.

They use the subscription to buy land from ecoworld sdn and also will acquire the Ecoworld International SPAC 30% stake when listed. Keep tight and don't sell for quick profit.

your average price is (2440+600)/1500 = 2.027
You can trade the warrant like stock or you can convert to mother share

you will receive the form in post to your home address if you own the shares.
The way to pay will be written to you in the form. You can sell the warrant directly to the market. If you choose to exercise the shares, you will need to pay 2.08. Ask your remisier how to do this. Normally people will keep warrant for sometime and then sell it unless mother shares give you good dividend and rise much higher than your exercise price. The warrant price will be adjusted anyway in association to the mother share price. Check in inari forum with people that has done this recently, they are helpful too.
Hope this helps.

yes you can. You need to submit a form and pay cheque. your 0.5 right issue will give you 0.4 warrant

orange 1. For every two shares you buy, you can pay 1.20 to buy one more right issue shares. For every 5 right issues shares you pay (1.20) they will give you four warrant for free.

So if you buy two shares today. Then pay 1.20 you will own 3k shares and 800 warrants

truthseeker1, ecoworld expand business elsewhere, like Australia and London. I thought they play the advert many times and you will get it :-). Watch carefully the location in the advert and that is where their investment is.

loonlee, you cannot buy right issues. You can only subscribe to it by paying rm1.20 if you own two ecoworld shares. So if you buy today 2 shares, you can pay 1.20 and you will own 3k shares.
There is also free warrant if you made the subscription for every 5 right issue, you will get four warrants. So in your case, you will get 800 warrants when you subscribe 1k right issues
It depends how the price is adjusted after the exercise. For eg. Inari shoot up the second day to price before right issue.