Public Investment Bank Bhd (PublicInvest) views Eco World Development Group Bhd's (EcoWorld Malaysia) RM572.8 million land acquisition in Negri Sembilan as fair, representing about 19.4 per cent of the proposed industrial development's total gross development value (GDV) of RM2.95 billion.
At this juncture, PublicInvest said there are no changes to its earnings estimates for EcoWorld Malaysia, pending further details on the project's official launch.
The research house has maintained a Neutral rating on the stock, with a target price of RM1.90, reflecting a 10 per cent premium to book value. This outlook is supported by the developer's track record of consistent profitability and attractive dividend yield.
EcoWorld Malaysia has officially entered into a joint venture with SD Guthrie Bhd and Negri Sembilan's state investment arm, NS Corporation, following the signing of a formal agreement last Friday. This move formalises the memorandum of understanding announced in late 2024.
This marks EcoWorld Malaysia's maiden foray into Negri Sembilan's industrial park segment. The site is strategically located within the Malaysia Vision Valley 2.0 economic corridor and is envisioned as a fully integrated, master-planned industrial hub with complementary commercial components.
Eco World Project Management Sdn Bhd, a wholly owned subsidiary of EcoWorld Malaysia, is expected to be appointed as the development manager.
PublicInvest highlighted that industrial development remains a key revenue stream for EcoWorld Malaysia. From FY2014 through to Feb 28, 2025, the group has recorded cumulative industrial sales of RM6.7 billion across its Eco Business Parks.
To date, more than 1,400 local and international firms operate within these parks.
In the first four months of FY2025 alone, EcoWorld Malaysia recorded close to RM1 billion in industrial sales, driven by two major land transactions signed in February 2025 with global technology giants. It sold 138.532 acres in Eco Business Park I to Microsoft Payments (Malaysia) Sdn Bhd, and 58.187 acres in Eco Business Park V to Pearl Computing Malaysia Sdn Bhd.
"As such, we believe the group's track record in the execution of industrial parks speak for itself and we are positive that demand for its industrial offerings would continue to be healthy," PublicInvest said.
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