ECO World Development Group Bhd (EcoWorld) delivered a stronger performance in the first nine months of its financial year 2026, helped mainly by booming sales of its industrial land.
Kenanga Research said the property developer’s core net profit rose 34% year-on-year to RM397.7 mil for the nine months ended June 2026.
This means the company has already achieved about 73% of the full-year profit expected by both Kenanga and the wider market.
The bigger story, however, was sales.
EcoWorld recorded RM5.06 bil in sales for the first 10 months of FY26, already well above its original full-year target of RM4 bil and higher than the RM4.55 bil recorded for the whole of 2025.
Industrial property was a major driver. Sales from this segment reached RM2.3 bil in the first 10 months, putting it on track to nearly double last year’s RM1.2 bil.
One of the biggest deals came in September, when EcoWorld sold 222 acres of industrial land to Tera Data Centers for RM1.01 bil. This was its sixth data centre deal.
The company also benefited from stronger cash generation. Cash generated from its business operations doubled to RM1.86 bil, helping it reduce its debt burden.
Its net gearing, a measure of how much debt it carries compared with its financial strength, fell to 0.21 times from 0.28 times in October 2025.
However, the latest quarter was not entirely smooth. Third-quarter revenue fell 22% from the previous quarter, while net profit declined 13.2% to RM112.2 mil.
Kenanga attributed the weaker quarterly profit partly to lower contributions from several joint ventures and associates.
Kenanga has raised its estimated FY26 sales to RM5.6 bil, from nearly RM5 bil previously, although it expects only a small increase in projected earnings because some joint-venture projects are still at an early stage.
The research house maintained its “Outperform” rating and RM2.35 target price, compared with EcoWorld’s RM1.94 share price when the report was published.
Kenanga said the company’s strong brand, property quality, resale value and ability to offer different types of homes remain key strengths.
It also highlighted a planned leasing agreement with Pearl Computing that could provide RM4.8 bil in leasing income over 20 years.—Sept 25, 2026
Main image: Eco World
