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Equity Research 4th October 2019

Overweight
Price : RM0.64
TP : RM0.80

Ecoworld International Bhd

Expecting Profits After 3 Years of Bearish Performance
________________
Based on FY19Q3 results, EWINT recorded a net profit of RM57.9 Raymond Sim
million. Excluding forex gain of RM8.89 million, core net EPS remains +60 1126219231
at 2 cents. greentrades.my@gmail.com

EWINT has been recording losses in its previous quarters despite the
3Y Share Price Performance
fact that it has sold a decent amount of units in its projects. Based on
different accounting standards adopted in UK, profits for EWINT can
only be recognized after the property is handed over to the buyer.
Therefore, EWINT has been constructing and developing 9 projects in
London for the past 3 years and it is now time for it to bear fruit.

EWINT expects to hand over Wardian, West Village and Yarra One in EWINT FINANCIAL INFORMATION
Shares O/S ( 'mn) 2,400
the next financial year. A portion of the Group’s effective stake in the
Market Cap ('mn) 1,500
future revenue of properties sold amounting to RM5.8 billion as at 31 Price 0.635
August 2019 is therefore anticipated to be translated into revenue Date of Price 4 Oct 19
and share of profits from joint ventures in FY2019 and FY2020. EPS 5.78
P/E Ratio 11.07
ROE % 5.78
NTA 1.00
Dividend is estimated to be distributed in end FY19 or FY20. This
would be a catalyst for investors to re-invest into EWINT and hold it
for the long term. Stock Peers P/E Ratio
Spsetia 15.46
Mahsing 7.99
Build to Rent Business (Btr). Btr is a term used to describe private
Simeprop 7.00
rented residential property, which is designed for rent instead of for Titijaya 11.35
sale. Btr segment in UK is growing at a rapid phase due to Ecoworld 9.89
Uems 27.85
unaffordability of houses in London. Ewint is targeting to achieve
10,000 Btr homes in the next 5 years which would generate recurring Average 13.26
income.

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Key Risk to Call
• No Deal Brexit. This would severely dampen the UK economy in the short term and
the property market may be in the stand still.
• Overall sluggish outlook for property industry stocks in Bursa Malaysia

Technical Analysis

The first resistance would be the 200 day m.a at RM0.70. Support is seen at the RM0.61 level.
Breakout of the RM0.65 level with strong volume will indicate an uptrend.

Executive Summary
Current stock valuations at RM0.64 have not factored in dividend distributions, potential
earnings recognition and is oversold based on its IPO price of RM1.20. Investors may still be
on the side lines due to Brexit concerns and therefore, provides a mismatch between valuation
and price. This is a medium-term opportunity trade.

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Disclaimer
Investing in the stock market involves risks of loss. Past performance is not an indicative guarantee of future
performance. Any opinions, trading classes, news, research, analysis, price target, or other information offered by
Raymond Sim, Greentrades, Greentrades Equity Research and the Greentrades Experience is provided as general
market commentary, which does not represent investment advice of any kind. We are not associated with any
investment banks in any way. I am not a financial advisor. We may or may not have positions in some of these
investment instruments. We will not accept liability for any loss or damage, including without limitation any loss
of profit, which may arise directly or indirectly from use of such information

Trade at your own risk. You are strongly encouraged to do your own research before making any investment
decision.