EcoWorld Sales Reach RM5.06 Billion After Tera Data Centre Deal

PETALING JAYA, Sept 28 — Eco World Development Group Bhd is on track to record its highest annual property sales for the financial year ending Oct 31, 2026, supported by residential demand, industrial property sales and a major data centre land transaction.

The developer recorded a core net profit of RM111 million on revenue of RM972 million for the third quarter ended July 31, 2026.

According to UOB Kay Hian Research, nine-month core earnings reached RM397 million, representing about 74% of its full-year estimate and 73% of the consensus projection.

EcoWorld’s future revenue stood at approximately RM5.01 billion, while net gearing remained at 0.21 times as of July 31.

Sales Exceed RM5 Billion for the First Time

EcoWorld recorded RM4.05 billion in property sales during the first 10 months of FY26, already surpassing its official full-year sales target of RM4 billion.

The subsequent RM1.01 billion sale of two industrial land parcels at Eco Business Park VII to Tera Data Centers (Malaysia) Sdn Bhd lifted total sales to RM5.06 billion.

The conditional transaction, announced in September 2026, involves approximately 221.7 acres of industrial land within the QUANTUM Pulse zone of the business park in Port Dickson, Negeri Sembilan.

Including the Tera transaction, EcoWorld’s FY26 sales have also exceeded the RM4.55 billion recorded for the whole of FY25.

Industrial properties contributed approximately RM1.33 billion, or 33% of the group’s first 10-month sales. Residential properties remained the largest segment, contributing RM2.30 billion or 57%.

The southern region was the largest geographical contributor, generating RM1.97 billion and accounting for 49% of sales.

Analysts Raise FY26 Sales Expectations

Kenanga Research reportedly raised its FY26 sales forecast to RM5.6 billion following the stronger performance and Tera land transaction.

UOB Kay Hian said EcoWorld was positioned to exceed the research house’s RM4.8 billion FY26 sales assumption. The figure was UOB Kay Hian’s forecast rather than EcoWorld’s official RM4 billion sales target.

The research house expects fourth-quarter margins to improve as EcoWorld recognises the remaining RM300 million to RM400 million in proceeds from data centre land sales.

UOB Kay Hian maintained its “buy” recommendation and RM2.70 target price.

Kenanga Research retained its “outperform” call with a target price of RM2.35. It highlighted the growth in nine-month core earnings and the increase in net cash generated from operations to RM1.86 billion.

Research Houses Differ on Earnings Outlook

RHB Research maintained a “buy” call and RM2.66 target price, citing expected progress billings from data centre land transactions and continued demand from EcoWorld’s southern projects.

The research house maintained its earnings forecasts, supported by future revenue of approximately RM5.01 billion and the group’s relatively stable gearing position.

MBSB Research took a more cautious view, maintaining a “neutral” recommendation while lowering its target price to RM1.97 from RM2.09.

It reduced its FY26-to-FY28 earnings forecasts by as much as 10.4%, citing pressure from elevated development costs, higher administrative expenses and a 26.3% effective tax rate.

Pearl Computing Lease to Add Recurring Income

EcoWorld’s longer-term earnings outlook also includes its build-and-lease data centre arrangement with Pearl Computing Malaysia Sdn Bhd.

The agreement covers an initial 20-year lease with total rental income estimated at up to RM4.8 billion. This is equivalent to approximately RM240 million annually once rental contributions begin.

The development is expected to be completed during the second half of FY27, after which it is intended to provide EcoWorld with a new source of recurring income.

While research houses differ on near-term margins and valuation, EcoWorld’s RM5.06 billion sales level, future revenue and data centre transactions provide the group with a stronger sales base heading into the final quarter of FY26.