E&O posts RM33m profit in 1Q on improved revenue, forex gains

• In a bourse filing on Wednesday (Aug 23), the premier lifestyle property developer said revenue jumped by 11.5% to RM85.4 million for 1QFY2024, versus RM76.6 million previously, which E&O attributed to an increase in revenue of RM3.6 million from the property segment and RM5 million from the hospitality segment.

KUALA LUMPUR (Aug 23): Eastern & Oriental Bhd (E&O) posted a net profit of RM32.95 million for the first quarter ended June 30, 2023 (1QFY2024), from a net loss of RM1.65 million a year ago, on the back of improved revenue.

In a bourse filing on Wednesday (Aug 23), the premier lifestyle property developer said revenue jumped by 11.5% to RM85.4 million for 1QFY2024, versus RM76.6 million previously, which E&O attributed to an increase in revenue of RM3.6 million from the property segment and RM5 million from the hospitality segment.

It added that there was a higher unrealised foreign exchange (forex) gain of RM25.7 million in 1QFY2024, versus an unrealised forex loss of RM22.8 million a year earlier.

Subsequently, earnings per share rose to 2.16 sen, from last year’s loss per share of 0.11 sen.

In terms of prospects, E&O said it is experiencing encouraging sales for its second launch on Andaman Island, namely Arica, in Penang.

“Both purchasers and end-financiers have expressed strong interest in Arica, due to its prime location near Gurney Drive and competitive pricing,” the group said.

“Based on our recent successes, we have plans to launch new product offerings in 4QFY2024. These projects will feature a mix of landed units and serviced apartments,” it added.

As for the group's hospitality segment in Malaysia and London, E&O said it continued to enjoy higher occupancy and room rates, due to the influx of domestic and international tourists.

“Concurrently, our non-room revenue services are witnessing higher demand in banqueting services for corporate and private events,” it said.

E&O shares were traded unchanged at 41.5 sen at Wednesday’s noon break, valuing the group at about RM646.32 million. Year-to-date, the counter had climbed by 15.28%.

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