ECO WORLD SHARES HIGHER AFTER IMPROVED 4Q 2024 PERFORMANCE
KUALA LUMPUR, Dec 13 (Bernama) -- Eco World Development Group Bhd's share price was higher today after it reported improved performance in the fourth quarter ended Oct 31, 2024 (4Q FY2024).
At 12.15 pm, Eco World shares rose 5.0 sen to RM2.05 per share, with 3.05 million shares traded.
In a Bursa Malaysia filing yesterday, Eco World reported a higher net profit of RM83.42 million in 4Q FY2024 compared to RM3.29 million a year ago.
It attributed the improved performance to several projects, namely Eco Botanic, Eco Botanic 2, Eco Spring, Eco Tropics, Eco Business Park I, Eco Business Park II and Eco Business Park III in Iskandar Malaysia and Eco Majestic, Eco Forest and Eco Sanctuary in the Klang Valley.
However, revenue fell to RM638.45 million from RM844.46 million previously due to revenue from the sale of a 37.23 hectares parcel of industrial land in Eco Business Park II having been included in 4Q 2023.
In a note today, Maybank Investment Bank Bhd said Eco World's 4Q 2024 core net profit exceeded its consensus estimates.
However, it said Eco World had set a conservative 2025 sales target of RM3.5 billion, which is 15 per cent lower year-on-year.
"We revise our 2025-2026 earnings forecasts by -five per cent to +17 per cent.
"We maintained a 'buy' call with a new target price of RM2.25, with the re-rating to reflect expectations of higher data centre developments in Quantum Edge and Eco Business Park V," it said.
Meanwhile, MIDF Amanah Investment Bank Bhd maintained a 'neutral' call on Eco World, with a revised TP of RM2.01 in view of better earnings visibility.
"We revise our FY2025/2026 earnings forecast by +17 per cent/+34 per cent to factor in higher progress billing. We also introduce our earnings forecast for FY2027," it said.
-- BERNAMA