KUALA LUMPUR, March 20 — AllianceDBS Research retained its ‘buy’ call on real estate developer, Eco World Development Group Bhd, on the company’s strong sales.
In a note today, the research house said the group has achieved RM621 million in sales as at February, of which 53 per cent came from Iskandar Malaysia (IM).
“This underpins the unrivalled market confidence towards Eco World’s launches, which continues to be well-received despite the challenging market at IM,” it said.
Meanwhile, AlianceDBS noted that the group unbilled sales stood at RM3.1 billion, offering strong earnings visibility.
The RM3.1 billion unbilled sales, on the back of RM158 million revenue reported for the first quarter financial year 2015, was within the research house’s expectation.
“As the group will be launching four new projects this year namely Eco Sanctuary@Shah Alam with a gross development value of RM8 billion and Eco Terraces@Penang (RM340 million), we believe that it is on track to achieve its RM3 billion sales target,” the research house said.
AllianceDBS has set a target price of RM2.35 for Eco World.
At 10.15am, Eco World’s share price fell one sen to RM1.97 with 399,600 shares traded. — Bernama
