E&O’s 4Q net profit nearly doubles, boosted by JV and tax gains, lower finance costs

• Quarterly revenue in 4QFY2025 nearly doubled to RM236.65 million from RM121.33 million, primarily driven by the disposal of a property in the UK.

KUALA LUMPUR (May 28): Eastern & Oriental Bhd (KL:E&O) nearly doubled its net profit for the fourth quarter ended March 31, 2025 (4QFY2025), on profits from its joint ventures, a tax gain and lower finance costs.

Net profit for the quarter was RM69.85 million compared with RM36.48 million in the previous year.

This increase came despite an 11.7% decline in operating profit to RM72.73 million from RM82.34 million.

In the quarter under review, E&O made a RM4.17 million profit from joint ventures, compared to a RM24.3 million loss a year earlier. It also had a RM1.89 million deferred tax gain, versus a RM10.64 million tax expense last year. Finance costs were cut in half to RM4.8 million.

Quarterly revenue in 4QFY2025 nearly doubled to RM236.65 million from RM121.33 million, primarily driven by the disposal of a property in the UK, according to the developer’s bourse filing.

No dividends were declared for the quarter, but the full-year dividend rose to one sen per share, up from none last year.

For FY2025, E&O’s net profit rose 26% to RM168.65 million, while revenue jumped 75% to RM741.08 million, mainly due to higher sales from ongoing projects and a UK property sale.

Including revenue from joint ventures, the property segment brought in RM1.06 billion, up from RM577.7 million last year. Operating profit for this segment rose to RM191.1 million from RM128.1 million.

In contrast, the hospitality segment's profit fell 12.8% to RM25.8 million, with revenue flat at RM104.4 million.

E&O plans to launch four new residential and retail projects in Penang and the Klang Valley by the second or third quarter of FY2026, with more updates to come.

For its hospitality segment, the group expects growth in tourist arrivals and revenue, supported by hotel upgrades, more international flights, and Malaysia’s expanded visa-free travel with China.

E&O shares were up four sen or 4.9% at 85 sen earlier, valuing the group at RM2.14 billion. Year-to-date, the stock has fallen 10.9%.

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