KUALA LUMPUR (Feb 14): Maybank Investment Bank (Maybank IB) believes Eco World Development Group Bhd (KL:ECOWLD) is "actively in talks" with data centre players for projects in its business parks in Klang Valley and Johor.

Eco World "may secure one or two data centre deals", Maybank IB said in a note.

"In addition to outright land sales, leasing data centre shelf building for recurring income could be a possible strategy, we understand," the research house said.

Eco World is aiming to expand its currently minimal recurring income, which doubles to increase the overall attractiveness of its projects and townships.

This includes its fine dining and lifestyle hub TUAH 1895 at its 40%-owned Bukit Bintang City Centre, which Maybank IB said could improve traffic to the site as well as its 10%-owned LaLaport Mall.

On the group's proposed joint venture (JV) for an industrial park project in Negeri Sembilan, Maybank IB said it could be firmed up by mid-2025 to be launched as early as the end of this year.

Maybank IB outlined that the JV's contributions could potentially lift Eco World's real net asset value (RNAV) by an estimated two sen per share, assuming a pretax margin of 20%.

The property player is partnering with SD Guthrie Bhd (KL:SDG) and state-owned NS Corporation for the RM2.9 billion gross development value project situated within the Malaysia Vision Valley 2.0 economic corridor.

This calculation assumes that Eco World holds a 50%-60% stake in the partnership, said Maybank IB, which lifted its target price to RM2.33, from RM2.25, following a change in its valuation metric to price-to-revised net asset value, from price-to-book value.

At noon break, Eco World shares were up five sen or 2.67% at RM1.92, valuing the company at RM5.69 billion.