CIMB Research maintains Add on Eco World, trims target price to RM7.35

KUALA LUMPUR (Dec 11): CIMB Research has maintained its “Add” rating on Eco World Development Group Bhd at RM3.95 with a lower target price of RM7.35 (from RM7.60) and said Eco World's 13MFY10/14 net profit beat house forecast by 12%.

In a note Dec 10, the research said the company’s new sales, including those from assets to be acquired, amounted to a very impressive RM3.2 billion, 60% ahead of its RM2 billion target.

“We retain our EPS forecasts, Add recommendation and target price basis of parity with RNAV.

“But we adjust downwards our target price after updating the RNAV components.

“Eco World remains one of our top picks in the property sector, with the restructuring exercise, strong new sales and exciting landbanking as key catalysts,” it said.