MIDF Amanah Investment Bank, Public Investment Bank and Kenanga Investment Bank separately made “buy” calls on the EcoWorld counter today on a stable outlook going forward.

EcoWorld Development announced that a fall off in construction earnings as projects were completed had reduced its profit for the quarter to RM57 million.

However, it said, group sales rose to RM1.35 billion in the same quarter from RM1.28 billion in the same period in FY22.

MIDF said EcoWorld’s earnings and net profit were below expectations.

It attributed the lower profit to reduced contributions from the group’s other joint ventures.

MIDF said the slower progress in billing and the slow work progress at construction sites during the Chinese New Year period had caused the group’s profit to dip slightly.

The investment bank retained its “buy” call with a target price of 87 sen. It said stable new sales outlook, a healthy balance sheet and a dividend yield of 7% would keep the group attractive for FY23.

Public Investment Bank and Kenanga echoed MIDF’s remarks adding that EcoWorld “met expectations”.

Both also made a “buy” call with a TP of 83 sen and 76 sen respectively.

The company did not declare a dividend this quarter. At the close of trade today, the share price stood at 71 sen, up 12.7% or 8 sen year-to-date giving the company a market capitalisation of RM2.08 billion.