KUALA LUMPUR (June 16): CIMB IB Research has upgraded Eco World International Bhd (EWI) to “Add” at RM1.03 with a lower target price of RM1.15 (from RM1.23) and said EWI’s 1HFY10/17 core net loss was smaller than expected, at 40% of house full-year forecast

and 56% of consensus, as a result of lower-than-expected administrative expenses.

In a note June 15, the research house said it expects EWI to turn profitable in FY18F on the back of handover of units.

“We lower FY17F loss forecast by 7% to reflect lower overheads, but also cut FY18- 19F EPS by 23% to mainly reflect slower sales in its London projects.

“This cuts our target price to RM1.15, based on parity with RNAV. However, we upgrade EWI to Add as we believe the 14% decline in its share price since IPO is overdone,” it said.