Maybank IB Research believes that EcoWorld’s strong branding will significantly enhance the value of the property.
PETALING JAYA: Eco World Development Group Bhd
’s (EcoWorld) new collaboration with SD Guthrie Bhd and NS Corp Sdn Bhd to jointly develop an industrial park in Negri Sembilan is a “win-win” deal for all parties involved, according to analysts.
The 1,166-acre site, located in Bukit Pelandok within the Malaysian Vision Valley 2.0 and close to Kuala Lumpur International Airport, has an estimated gross development value of RM2.9bil.
“We view this positively as the strategic partnership leverages the unique strengths of both SD Guthrie and EcoWorld, driving mutual growth and long-term value creation,” said Maybank Investment Bank (Maybank IB) Research in a report.
As one of the largest landowners in Malaysia, the research house noted that SD Guthrie brings valuable “hardware” in the form of its extensive landbank.
Meanwhile, EcoWorld, as a leading property developer in the country with a strong brand presence and proven track record, plays a crucial role in unlocking the full potential of this landbank.
Maybank IB Research believed that EcoWorld’s strong branding will significantly enhance the value of the property, making it more appealing and marketable to potential business owners and investors.
Pending further details, Maybank IB Research maintained its earnings forecasts for EcoWorld.
Maybank IB Research has a “buy” call on EcoWorld with an unchanged target price (TP) of RM2.25 per share.
MIDF Research, in a note to clients yesterday, stated it was neutral to positive on the collaboration, which will expand EcoWorld’s industrial property development portfolio.
It highlighted that the property developer has been looking to expand its industrial property division due to its expertise in this segment and high demand for industrial properties in Malaysia.
The research house maintained a “neutral” call on the stock with an unchanged TP of RM2.01 per share. “We think the positives have been largely priced in as EcoWorld is trading above its latest net tangible asset value of RM1.66 per share,” it said.
