ECOWORLD UP 4 PCT ON PD INDUSTRIAL PARK DEVELOPMENT

KUALA LUMPUR, April 21 (Bernama) -- Share prices of Eco World Development Group Bhd (EcoWorld) rose in early trade on Monday after signing a tripartite agreement with SD Guthrie Bhd and NS Corporation to transform 483.59 hectares in Bukit Pelandok, Port Dickson, into an integrated industrial park.

At 10.25 am, EcoWorld advanced 4.0 per cent or 7.0 sen to RM1.82, with 107,400 units traded.   

In a joint statement last Friday, the parties said the collaboration sets the wheels in motion for the development of Parcel C within Malaysia Vision Valley 2.0 (MVV 2.0). 

The development will be via a special purpose vehicle Eco Business Park 7 Sdn Bhd (EBP7SB). 

EcoWorld will have a 55 per cent stake in EBP7SB, SD Guthrie, and NS Corp, 30 per cent and 15 per cent, respectively. 

MIDF Amanah Investment Bank Bhd said EcoWorld’s net gearing is expected to increase marginally to 0.39 times (x) from 0.37x. It remains positive on EcoWorld as the growing business park segment will drive earnings growth.

The investment bank expects the impact on EcoWorld’s balance sheet to be minimal.

“Assuming EBP7SB funds the land acquisition via 30 per cent equity and 70 per cent borrowings, capital requirement for EcoWorld is estimated at RM94 million (at 55 per cent stake), which will lift net gearing marginally higher to 0.39x from 0.37x in the first quarter of its financial year 2025,” it said in a research note today.

Meanwhile, the project will be developed over nine years with the first launch targeted by the first half of 2026, which will support EcoWorld’s new sales prospects, said MIDF Amanah.

-- BERNAMA