Eco World International surges on pivot to Malaysia

• The move leverages Eco World International’s strong balance sheet and allows for future collaborations with Eco World Development Group Bhd (KL:ECOWLD) for a “fresh income base” while reducing earnings volatility from overseas projects, Maybank Investment Bank said.

KUALA LUMPUR (May 2): Shares of Eco World International Bhd’s (KL:EWINT) rose on Friday to its highest in two months following a planned pivot from foreign markets to the Malaysian market.

At the time of writing, shares in Eco World International rose 23% or five sen to 26.5 sen, its highest since Feb 27, 2025, as more than 11 million shares changed hands. At the last price, the company had a market capitalisation of RM624 million.

Maybank Investment Bank, the sole research house covering the property developer, upgraded its rating to “buy” from “hold” previously.

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The move leverages Eco World International’s strong balance sheet and allows for future collaborations with Eco World Development Group Bhd (KL:ECOWLD) for a “fresh income base” while reducing earnings volatility from overseas projects, the research house said.

Eco World International is “well-positioned” to pursue higher-margin projects locally and the company could collaborate with its largest shareholder Eco World Development through co-developments or fee-based arrangements, the research house added.

Dividends from Eco World International, however, could be lower to fund the new domestic strategy, Maybank flagged. Eco World International previously paid a total dividend of 11 sen per share in the financial year ended Oct 31, 2024 (FY2024) and 39 sen in FY2023.

Eco World Development holds a 29% stake in Eco World International, followed by another local property developer Paramount Corp Bhd (KL:PARAMON) with a 21.54% stake.

Eco World Development and Eco World International may explore joint venture partnerships at project level, especially for new projects in Malaysia which may include data centre development or others, according to MIDF Amanah Investment Bank.

While the entry of Eco World International into Malaysia’s property market could create potential competition with Eco World Development, "we see greater synergies from the combined balance sheet strength”, MIDF added.

Eco World International, originally set up in 2013 to focus on foreign projects, is opening itself to local projects as it grapples with headwinds in the UK and Australia since the onset of the Covid-19 pandemic.

As part of the change, Eco World International has also proposed a name change to EWI Capital Bhd and to end the brand licensing arrangement that allowed the company to use the 'EcoWorld' brand.

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