Downgraded by Affin Hwang

Reason for the drop:
http://www.thestar.com.my/business/business-news/2016/06/09/airlines-to-face-challenges-in-2017/

Ringgit 4.22

Although property sector is experiencing a slowdown, EWEIN might be the least affected high-end developer in Penang.
Their maiden project is the most sought after and offers the best value for self-stay or investment. Buyers know that their units will fetch a much higher price in the secondary market once the property market recovers.

From Kenanga Research Report (29 Jan 2016):
By far, the most impressive development we have seen was EWEIN’s City of Dreams, followed by Eco Meadows and Eco Terraces. EWEIN’s City of Dreams certainly sells a compelling value proposition given its price and high-end positioning in a sought after location (refer overleaf). We gather that EWEIN is trying to build its brand amongst Penangites by offering value and the promise of quality.

EWEIN is embarking on a one-stop wellness destination named “Wellness City of Dreams” which will eventually span over a reclaimed land of 110ac and carries a GDV of RM25b over a 10-year period given to Consortium Zenith BUCG by the Penang Government to build the RM6.3b undersea tunnel and three road bypasses in Penang. The first 50 ac (3 parcels) in Bandar Tanjong Pinang is expected to be fully developed before Dec-2020 and the group has just been granted a right to acquire these landbanks for a total of RM2.83b.
Phase 1 (4.4 ac) consists of two 38-storey high-end residential towers (572 units), named Elaine and Chloe, whose units are all fronting Gurney Drive/sea views of which piling has already started. Most units built-ups range between 1,097-1,335sf and the duplex units are at 2,350sf while all units enjoy their own private lift lobby. We gather that ASP is around RM1,350psf (net) for a high-end fully furnished with Interior Design; this is quite an attractive pricing for a high-end development in the area when other comparable are being priced at RM1,500-1,700psf. Another selling point is that the project offers more than 50 facilities but only charges a maintenance fee of 30.0 sen psf monthly (1st year free) while equivalent condominiums charging similar maintenance fees only have the standard facilities or are much older. Their 7-D scale model, a first of its kind in Malaysia, was truly an experience we will not forget. It certainly sets themselves apart from other developers while their marketing pitch was truly convincing for the price advertised and very unique product offering which has certainly caught many buyers attention albeit being a ‘newbie’ developer.