| MALAYSIA |
| TP REVISION |
| Eco World Development (ECW MK) Price:MYR0.41 Target Price:MYR0.41 Recommendation:Hold |
| Dragged by MCO |
| ECWs 2QFY10/20 net profit of MYR21m (-48% YoY) and 8.5MFY20 property sales of MYR976m were below expectations. Management is however keeping its FY20 sales goal of MYR2b. We revise our FY20-22 earnings forecasts by -32% to +8% to factor in slower progress billings and the revised profit estimates for Eco World International (ECWI; SELL; MYR0.38 TP). Our new TP is MYR0.41 (-12sen) on 0.2x FY21 PBV (-2.5SD of mean). Maintain HOLD; we prefer SPSB and SDPR for sector exposure. |
| MALAYSIA |
| TP REVISION |
| Eco World International (ECWI MK) Price:MYR0.44 Target Price:MYR0.38 Recommendation:Sell |
| Dragged by Covid 19 lockdown |
| EWIs 2QFY10/20 core net profit of MYR20m (>+100% YoY) was in line. Property sales however fell short due to the lack of en-bloc sales of build-to-rent (BtR) units in 8.5MFY20. Management is keeping its sales target of MYR2.2b for FY20 and is confident of securing at least one enbloc sale in FY20. We adjust our FY20-22 earnings forecasts by -50% to +15x. Our TP is raised to MYR0.38 (on 0.3x PBV, -3SD of mean). Our concerns remain on ECWIs earnings visibility post 2021. Reiterate SELL. |
| MALAYSIA |
| TP REVISION |
| Tambun Indah Land (TILB MK) Price:MYR0.53 Target Price:MYR0.62 Recommendation:Buy |
| Management maintains FY20 sales goal |
| TILBs 1Q20 net profit of MYR0.8m (-92% YoY, 92% QoQ) came in below expectations. 3M20 locked-in property sales of MYR9.1m (-72% YoY) were however within our expectation. Management is keeping its sales goal of MYR130m (-30% YoY) for FY20 despite the disruptions arising from MCO 2020. We lower our earnings forecasts by 20-35%. Our TP is largely unchanged at MYR0.62 (-1sen) on an unchanged 0.4x FY21 PBV (-1.5SD of mean). BUY. |
