KUALA LUMPUR (July 11): Maybank Investment Bank Bhd expects Eco World International Bhd to report its maiden profit in the second half of financial year ending  Oct 31, 2018 (2HFY18), with the progressive completion of its London City Island project.

Elsewhere, Eco World International's Yarra One project in Melbourne, Australia has received decent bookings of some 34% since end-May 2017, Maybank analyst Wong Wei Sum said.

“In our view, FY18 is the year for Eco World International as earnings will come in 2HFY18 and the transition for Brexit should be more settled by end-2018, before the actual event in March 2019.

“We maintain our earnings forecasts and RM1.12 target price, based on an unchanged 0.75 times P/RNAV peg. 2HFY17 losses should be lower on lower interest expenses and the absence of one-off listing expense,” Wong said in a note today.

RNAV stands for revised net asset value.

At 10:58am today, Eco World International shares fell two sen or 1.79% to RM1.10, for a market capitalisation of RM2.69 billion. 

Eco World International has narrowed its net loss. Eco World International told Bursa Malaysia that 1HFY17 net loss stood at RM30.88 million versus a net loss of RM118.63 million a year earlier.

Eco World International said its latest reported net assets per share stood at RM1.08. Wong said Maybank's estimated RNAV for Eco World International stood at RM1.49 a share. — theedgemarkets.com

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