Oil jumps above US$107 as Asia sells off, Fed and BOJ rate decisions now collide with a fresh energy shock Markets are opening the week under renewed pressure. Brent crude has jumped about 3% to above US$107 , Asian equities are falling sharply, and U.S. Treasury yields remain close to 5%. At the same time, investors are preparing for possible rate hikes from both the Federal Reserve and Bank of Japan this week . For investors, the central question has become: Can central banks contain inflation without causing a much larger slowdown when energy prices are surging at the same time? 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,656.98, +0.86% Friday 🇺🇸 Dow Jones +0.98% Friday 🇺🇸 Nasdaq +0.96% Friday 🇲🇾 FBM KLCI 1,686.74, -1.10% Friday 🇯🇵 Nikkei -1.7% Monday morning 🇰🇷 Kospi -3.3% Monday morning 🌏 MSCI Asia ex-Japan -0.8% 🛢️ Brent crude ~US$107.36, +2.6% 🛢️ WTI crude ~US$102.48, +2.4% 🇺🇸 U.S. 10Y Treasury ~4.97% 🥇 Gold ~US$4,336...
Key Growth Strategy
- Eco World Development Group Bhd (KL:ECOWLD) aims to increase recurring income from 20% to 30% of total revenue within the next three to five years, according to President and CEO Datuk Chang Khim Wah.
- Growth will be driven by five key business pillars:
- Eco Hubs (commercial spaces)
- Eco Business Parks (green industrial parks)
- Quantum (data centres)
- Eco Townships (landed residential homes)
- Eco Rise (high-rise developments)
- Quantum, which focuses on large-scale data centre-related land leases, is one of the group's fastest-growing segments.
Expansion in Data Centre Leasing
- EcoWorld has secured four industrial land lease deals worth RM1.59 billion since August 2024 with global tech giants Microsoft and Google.
- The latest deal, announced Tuesday, involves a 20-year, RM266.1 million triple-net lease with Google's affiliate, Pearl Computing Malaysia Sdn Bhd, for 92 acres of land.
- Despite its data-centre expansion, EcoWorld emphasized that it remains a real estate business, not a technology player.
- “We are not in the data business. It's a pure land transaction,” Chang clarified.
No Plans for Special Dividend
- Despite achieving record-breaking RM4.07 billion sales in FY2024, EcoWorld has no plans for a special dividend.
- Instead, the group will maintain or increase regular dividend payouts, similar to previous years.
- FY2024 dividend remained at six sen per share.
- The decision aligns with EcoWorld’s strategy to reinvest capital into land acquisitions, build-and-lease projects, and expansion.
Financial Performance & Market Position
- Net profit surged 60.33% YoY to RM303.54 million in FY2024, compared to RM189.32 million in FY2023.
- Annual revenue remained steady at RM2.26 billion.
- EcoWorld’s share price closed at RM1.96, up one sen (0.51%) on Wednesday, valuing the company at RM5.8 billion.
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