After booking RM3.2 billion and RM3.016 billion sales in financial year 2014 (FY14) and FY15 respectively, EcoWorld is targeting RM4 billion sales in FY16, despite the relatively weak property market in which most of its peers are having slower sales performance. EcoWorld has clearly been gaining more market share at the expense of its competitors. We are projecting an explosive three-year earnings compound annual growth rate of 86% over FY15 to FY18 on its relatively smaller profit base at this juncture. EcoWorld is targeting RM4 billion sales in FY16, which will be anchored by 15 ongoing projects and its proportionate share of sales from its proposed 30% stake in Eco World International. Key risks to our view include the surge in property prices over the last few years, coupled with recent tightening measures, which could weaken property sales as buyers turn more cautious.— AllianceDBS Research, Oct 27

Source: The Edge Markets October 28, 2016 02:07 UTC