EcoWorld Shares Ease After S$208.09 Mln Singapore Land Acquisition
KUALA LUMPUR, Sept 21 (Bernama) -- Eco World Development Group Bhd’s share price eased in early trading today despite securing a S$208.09 million (RM667.6 million) parcel of land in Singapore.
At 10.17 am, EcoWorld’s share price lost one sen to RM1.95, with 98,100 shares traded.
On Friday, the property developer said its unit had been confirmed as the successful bidder for the 4,283.5-square metre land parcel, which has a 99-year lease, following a tender conducted by Singapore’s Urban Redevelopment Authority.
The site is to be developed into residential condominiums or flats.
RHB Investment Bank Bhd said although the bidding price was slightly high, it remained positive on EcoWorld’s land acquisition, citing its excellent amenities, including renowned schools, parks and a mass rapid transit (MRT) station.
It estimated a gross development value of RM1.3 billion for the project.
“Despite the acquisition’s mildly positive impact on our revised net asset value estimate, we lower our target price (TP) to reflect volatile geopolitical conditions in West Asia and near-term local political uncertainty,” the investment bank said in a note today.
Thus, RHB Investment Bank maintained its “buy” call on EcoWorld but lowered its TP to RM2.66 from RM2.78, implying a 36 per cent upside and an estimated financial year 2026 yield of about four per cent.
In a separate note, CIMB Securities Sdn Bhd said it retained its earnings forecasts pending greater clarity on key parameters, while maintaining its “buy” call on EcoWorld with a TP of RM2.60.
Meanwhile, Public Investment Bank Bhd maintained its “neutral” stance and TP of RM2.10, citing EcoWorld’s consistent profit delivery and decent dividend yield.
-- BERNAMA