DC land sales to boost 2H26F margins: Net profit beats as gross margins rise sharply on cost savings

研报英文原文证据摘录

DC land sales to boost 2H26F margins: Net profit beats as gross margins rise sharply on cost savings

Global Markets Research

Eco World Development Group ECOW.KL ECW MK 18 June 2026

EQUITY: PROPERTY

Rating Remains BuyDC land sales to boost 2H26F margins

Target priceSales on track to exceed FY25 level of MYR4.55bn; ECW Remains MYR 2.80

sees a strong return of DC project pipeline

Closing price

18 June 2026 MYR 2.11Net profit beats as gross margins rise sharply on cost savings

Eco World Development (ECW) reported 2QFY26 results that were above our estimates on Implied upside +32.7%stronger gross margins. Revenue declined 9% y-y but the gross margin improved 1.2pp y-y

to 31.3%, coming in 3.3pp above our expectations due to higher cost savings from Market Cap (USD mn) 1,664.6

completed projects and industrial land sales. Although selling and marketing costs were ADT (USD mn) 1.3

higher than expected, the higher gross margins resulted in its net profit being flat y-y, but

came in 20% higher than our expectations. The net profit margin improved to 16.2% and

came in 3.3pp above our expectations. Relative performance chart

7M26 sales have reached 82% of the company’s MYR4bn target and with the upcoming

launch of the Eco Radiance township along with strong continuing sales from its industrial

parks, we see it on track to exceed FY25 sales of MYR4.55bn.

Key highlights from results briefing

During the results briefing, management highlighted that: 1) the remaining 25-30% (~MYR400-

500mn) of DC (data center) related land sale revenue from ECW’s first four projects will be

recognized in 2H26E. MYR281mn of land sale revenue from the KNBDC (unlisted) land sale will

be recognized in FY27E. Management continues to see strong demand for DC projects and will