KUALA LUMPUR, Dec 17 ― Kenanga Research has maintained a “Market Perform” recommendation for Eco World Development Group Bhd backed by the company's financial year 2021 core net profit of RM240 million which surpassed expectations.
In a research note, it said the property development company's fourth quarter FY21 achieved stronger-than-expected margins and property sales. Core net profit for the quarter amounted to RM100.1 million. It said the dividends were also above expectation. The company declared 2.0 sen dividend in Q4FY21, bringing FY21 dividend to 4.0 sen, above the research firm's 3.0 sen target.
“For FY22, the group's management has indicated sales of RM3.5 billion and RM2.0 billion for ECOWLD and Eco World International Bhd , while our targets are slightly more conservative at RM3.3 billion and RM1.5 billion, respectively,” it said.Risks to its call include weaker-than-expected property sales and higher-than-expected overheads and finances.
As at 12.30pm, the company's share price eased half-a-sen to 85.5 sen with 534,000 shares transacted. ― Bernama