PETALING JAYA (Aug 15): Eastern and Oriental Bhd (E&O) saw its net profit increase 22.68% year-on-year to RM23.26 million or 1.9 sen per share for the first quarter ended June 30, 2015 (1QFY15), compared with RM18.96 million or 1.56 sen per share previously, on the sale of a land bank in Jalan Sungai Besi, Kuala Lumpur.

Revenue for 1QFY15, however, declined 46.9% to RM68.89 million from RM129.74 million for 1QFY14, the property developer’s filing with Bursa Malaysia showed yesterday.

The company said its profit before tax for 1QFY15 declined 25.91% to RM24.6 million, compared with RM33.21 million in 1QFY14, due to lower revenue recognised and higher finance costs, which were partly mitigated by higher contributions from share of results of an associate and share of results of joint ventures (JVs).

E&O Jalan Sungai BesiIn a statement, the company said it had tapped its property investment segment and profitably disposed of a long-held land bank in Jalan Sungai Besi.

E&O deputy managing director Eric Chan Kok Leong (pictured) said the company would have to remain agile and responsive to rise above the current challenging market conditions.

He said E&O expects its new and upcoming launches to buttress the group’s earnings for the subsequent financial quarters, particularly its catalyst project, the Seri Tanjung Pinang Phase 2 (STP2).

The STP2 project is on track, and negotiations to secure a reclamation contractor are already in advanced stages, the statement read.

E&O launched its first executive apartments, The Tamarind, in Penang in early 2015, with a take-up rate of 90% to date. It is now working on releasing the second tower in the second half of this year.

The company also said its JV project with Khazanah Nasional Bhd and Temasek Holdings Pte Ltd, Avira in Iskandar Medini, had also taken off with the first phase of its Garden Terraces holding a take-up rate of 90%, with the second phase targeted for launch soon.

Its upcoming condominium project in Jalan Conlay, Kuala Lumpur, a collaboration with its long-time partner Mitsui Fudosan Co Ltd, is in the planning stage and slated for launch in early 2016.

E&O shares closed 1.32% or two sen lower at RM1.50 yesterday, with a market capitalisation of RM1.841 billion.

This article first appeared in the digitaledge DAILY on Aug 25, 2015. Subscribe here.

SHARE
RELATED POSTS
  1. Berjaya Land succeeds in overturning COA decision to cancel Selangor Turf Club plan
  2. Radium unveils Desa East Residence project in Sungai Besi
  3. E&O to buy out partner for RM47 mil to fully-own Seri Tanjung Pinang concession