E&O’s Q2 earn­ings surge on higher op­er­at­ing profit

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: East­ern & Ori­en­tal Bhd’s (E&O) net profit for the sec­ond quar­ter ended Sept 30, 2017 grew five­fold to RM19.68 mil­lion from RM3.83 mil­lion a year ago due to higher op­er­at­ing profit from the prop­erty seg­ment on the back of higher rev­enue recog­nised.

In a fil­ing with Bursa Malaysia yes­ter­day, the group said the higher op­er­at­ing profit was also due to steady progress in con­struc­tion from on­go­ing projects. Op­er­at­ing profit for the quar­ter stood at RM46.29 mil­lion com­pared with RM8.15 mil­lion a year ago.

Rev­enue for the quar­ter more than dou­bled to RM195.88 mil­lion from RM79.28 mil­lion a year ago mainly due to higher rev­enue con­tri­bu­tion from the prop­erty seg­ment as a re­sult of higher rev­enue recog­ni­tion from on­go­ing projects and higher sales of com­pleted prop­er­ties.

For the six months ended Sept 30, 2017, net profit grew al­most six­fold to RM40.92 mil­lion from RM7.07 mil­lion a year ago while rev­enue rose 52.24% to RM369.32 mil­lion from RM242.59 mil­lion a year ago.

“Our pos­i­tive re­sults for the first half of fi­nan­cial year 2018 re­flects an up­ward trend in our per­for­mance shown also by our first quar­ter re­sults. We hope to sus­tain this per­for­mance by en­hanc­ing our sales ini­tia­tives as well as through pru­dent man­age­ment of our fi­nan­cial po­si­tion,” man­ag­ing di­rec­tor Kok Tuck Cheong said in a state­ment yes­ter­day.

Com­ment­ing on up­com­ing projects, Kok said the group is at the plan­ning and de­sign stage for its project at the in­ter­sec­tion of Jalan Con­lay and Jalan Kia Peng, with a tar­get set to launch by end of 2018.

Mean­while, the Seri Tan­jung Pi­nang Phase 2A project off the north­east coast of Pe­nang is in progress with recla­ma­tion al­ready achiev­ing the tar­geted five me­tres chart da­tum (CD) level in cer­tain ar­eas. The ap­pli­ca­tion of ti­tles for land re­claimed above two me­tres CD is in progress.

E&O’s share price fell 1.36% or 2 sen to close at RM1.45 yes­ter­day with a to­tal of 503,100 shares traded, giv­ing it a mar­ket cap­i­tal­i­sa­tion of RM1.91 bil­lion.

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