KUALA LUMPUR: Eco World International Bhd's first quarter of 2023 core net loss RM4.8 million (versus RM54 million net loss in Q4 FY22) is lower than expected, Maybank Investment Bank Group (Maybank IBG) said.
This accounted for just 13 per cent/16 per cent of Maybank IBG/consensus FY23 net loss forecasts.
The firm attributed the lower-than-expected losses to stronger sales from its Australia projects and the commencement of handover in Kew Capital Court in London in Q4 FY22.
Maybank IBG said Eco World International's Q1 FY23 property sales of RM335 million were on track to meet its RM1.4 billion sales target for FY23.
Hence, its commitment to reward its shareholders with a 37.5 sen special distribution by end-2023 was achievable, the firm added.
Eco World International secured RM335 million property sales as at February 2023.
"Including RM189 million reserves, total sales and reserves were RM524 million, or 37 per cent of its RM1.4 billion sales goal for FY23.
"As such, the company reiterates its commitment to reward shareholders with a special distribution of RM900 million via capital repayment in end-2023," it said.
Maybank IBG lowered Eco World International's FY23/24/25 loss projections by 25 per cent to 37 per cent.
"Our target price is unchanged at 66 sen," said the firm, which maintained tactical "Buy" on Eco World International.