Strong sales recorded
Profit in line but sales above
ECW’s 2QFY10/21 net profit of MYR42m (+1.7x YoY, -32% QoQ) was in
line. Its 7MFY21 locked-in property sales of MYR2.53b were however
above expectation. Management is confident to exceed its FY21 sales
target of MYR2.9b. We adjust our earnings forecasts by -7% to -9%. Our
TP remains intact at MYR0.78 (on an unchanged 0.5x FY21 PBV). After
the recent weakness in share price, ECW now offers a total return of 22%
to our TP. We upgrade ECW to BUY (from HOLD).