MIDF Research reiterates “Buy” call on Eco World Development Group

MIDF Research reiterates "Buy" call on Eco World Development Group

KUALA LUMPUR, Jan 5 — MIDF Research has reiterated its “buy” call on Eco World Development Group Bhd with a target price of RM1.88 per share.

The research house said the current share price of RM1.43 is below the price-to-revalued net asset valuation (RNAV), which is not justified as the group has proven that it can secure high property sales in Malaysia with superior earnings against its peers.

“The “buy” recommendation is in tandem with Eco World’s excellent sales achievement, superior earnings growth prospects and strong branding,” MIDF Research said in a note today.

Eco World achieved RM3.02 billion sales in financial year last year compared with its peers’ estimated sales of between RM500 million and RM2.3 billion.

The property developer also has a strong unbilled sales of RM4.16 billion as at end-FY15 and its FY16 earnings was expected to grow by 183%, higher that peers’ average of 13 per cent growth.

On land bank, Eco World’s undeveloped land bank stood at 2,539 hectares with a total gross development value of RM74.96 billion.