Hot Stock Eco World rises 7% after glowing analyst reports

by **Cals** Tue 13 May 2014, 01:19

Hot Stock Eco World rises 7% after glowing analyst reports

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Monday, 12 May 2014 13:11

KUALA LUMPUR (May 12): Eco World Development Bhd rose as much as 6.9% after CIMB Investment Bank Bhd issued a glowing report on the company, when commencing coverage with an “add” call and target price (TP) of RM8.00.

At 12.30 pm noon break, Eco World’s share price increased by 23 sen or 4.9% to RM4.89 with some 1.8 million shares done.

The counter was among the top 10 gainers on Bursa Malaysia, rising as much as 32 sen or 6.9% to a high of RM4.98.

In a note, CIMB's research head Terence Wong said property developer Eco World is undergoing a major transformation, which will put the firm on investor’s radar.

Eco World is linked to SP Setia Bhd's former chief Tan Sri Liew Kee Sin as it is controlled by his son.

"Eco World is undergoing a major transformation that will put it high on investor’s radar. It is likely to become the most-watched and exciting developer in the coming years as it has the DNA of the best-managed property company in Malaysia, i.e. SP Setia.

"Tan Sri Liew joined Eco World's board on May 5 as a non-independent and non-executive director and he brings with him the credibility and track record that made SP Setia Malaysia's best and most-admired developer," Wong said.

Eco World said last week Liew had emerged as a substantial shareholder in the firm with an indirect 35.05% stake. Liew owns the stake comprising 88.8 milion shares through his son Tian Xiong's direct equity portion in the firm.

Maybank Investment Bank Bhd (Maybank IB) had also highlighted the stock in its property sector note today, saying that Eco World is “the new bellwether for the property sector”.

"Eco World Development (ECW MK) gained much interest from Singapore investors while it is a new name to Hong Kong and US investors," said Maybank IB.