Ecoworld Shares Mixed In Early Trade After Port Dickson Land Deal
KUALA LUMPUR, Sept 23 (Bernama) -- Eco World Development Group Bhd’s (EcoWorld) shares were mixed in early trade, following its announcement to dispose of two industrial land parcels in Port Dickson, Negeri Sembilan, to Tera Data Centers (Malaysia) Sdn Bhd for about RM1.01 billion.
It opened flat, eased slightly, then briefly moved higher before flattening out again.
As at 10.10 am, EcoWorld’s share price was flat at RM1.95, with 336,100 shares traded.
In a note today, MBSB Investment Bank Bhd (MBSB IB) said the land disposal is expected to enhance EBP 7’s growth prospects through the entry of a data centre operator, as the transaction is expected to boost EcoWorld’s property sales.
Thus, the investment bank has maintained a “neutral” stance on EcoWorld, pending the announcement of its third quarter of financial year 2026’s results, with an unchanged target price (TP) of RM2.09.
“Overall, we view the land disposal positively as it is expected to enhance the growth prospects of EBP 7 while strengthening EcoWorld’s balance sheet and earnings outlook.
“In addition, we remain constructive on EcoWorld’s earnings prospects, supported by recurring rental income from the Pearl Computing data centre and the group’s solid property sales momentum,” MBSB IB said.
Echoing this view, Public Investment Bank Bhd also maintained a “neutral” call on the group and RM2.10 TP, or about a 20 per cent premium to book value, given its consistency of delivering profits and decent dividend yield.
-- BERNAMA