Kuala Lumpur: Share prices of Eco World Development Group Bhd (EcoWorld) saw an increase in early trading on Monday, following the company's announcement of a tripartite agreement with SD Guthrie Bhd and NS Corporation. This collaboration aims to transform 483.59 hectares in Bukit Pelandok, Port Dickson, into an integrated industrial park.

According to BERNAMA News Agency, at 10:25 am, EcoWorld's share price had risen by 4.0 percent or 7.0 sen to RM1.82, with 107,400 units traded. A joint statement released last Friday by the involved parties highlighted that this agreement initiates the development of Parcel C within Malaysia Vision Valley 2.0 (MVV 2.0).

The project will be managed through a special purpose vehicle named Eco Business Park 7 Sdn Bhd (EBP7SB). EcoWorld will hold a 55 percent stake in EBP7SB, while SD Guthrie and NS Corp will hold 30 percent and 15 percent stakes, respectively.

MIDF Amanah Investment Bank Bhd commented that EcoWorld's net gearing is projected to slightly increase to 0.39 times from 0.37 times. The bank remains optimistic about EcoWorld's prospects, as the expanding business park segment is expected to bolster earnings growth.

The investment bank also anticipates that the impact on EcoWorld's balance sheet will be minimal. It noted, "Assuming EBP7SB funds the land acquisition via 30 percent equity and 70 percent borrowings, the capital requirement for EcoWorld is estimated at RM94 million (at 55 percent stake), which will lift net gearing marginally higher to 0.39 times from 0.37 times in the first quarter of its financial year 2025."

The development of the project is planned over a nine-year period, with the first launch scheduled for the first half of 2026. This is expected to enhance EcoWorld's new sales prospects, as mentioned by MIDF Amanah.