AMINVESTMENT Bank has maintained its hold call on Eco World Development Group Bhd with an unchanged fair value of 73 sen per share.
“We make no changes to our financial year 2020 (FY20), FY21 and FY22 earnings forecasts,” the research house said in a note on Dec 16.
This is due to Eco World’s plans to develop a mixed residential and commercial township development with a preliminary estimated gross development value (GDV) of RM1.67 bil.
Eco World, through its subsidiary Melia Spring Sdn Bhd, has proposed to acquire 200 acres of freehold land located in Pulai, Johor Bahru, for RM304.9 mil from Iskandar Investment Bhd.
The new land is located in Iskandar Puteri next to Eco World’s Eco Botanic township, the group’s first project in Iskandar Malaysia.
“We believe this acquisition will enable Eco World to replenish its landbank in Iskandar Malaysia. Since 2014, the group has not acquired any new landbank down south.
“We make no changes to our earnings forecasts and fair value since this proposal is still at the early stage. We maintain hold,” said the research house.
