E&O EYES PROJECTS WORTH RM1.5b
AmInvestment maintains ‘buy’ call on developer
PROPERTY player Eastern & Oriental Bhd (E&O) will launch new property projects worth RM1.5 billion over the next two years.
Managing director Kok Tuck Cheong said the projects included The Conlay in the city centre, here, which was expected to command gross development value (GDV) of RM896 million.
Others are The Peak i n Damansara Heights, which has a GDV of RM278 million, and Plot 13A in Penang with a GDV of RM350 million.
Kok said the company was also targeting RM400 million in sales for its 2019 financial year from existing inventory and Seri Tanjung Pinang 2A (STP2A) project.
The reclamation works of STP2A had been progressing well and was 95 per cent complete, he said after the company’s annual general meeting, here.
Although the property market remained challenging due to tight financing and external uncertainties, Kok said it was fortunate that building materials were much cheaper now.
“Thus, we could be aggressive in our pricing but we want to be more responsible to our buyers,” he said.
AmInvestment Research has maintained a “buy” call for E&O with an unchanged fair value of RM2.01 per share.
The research firm expects stronger earnings in the coming quarters with the progressive recognition of STP2A sale to Retirement Fund Inc (KWAP).
E&O registered a core net profit of RM23.3 million, a 28.7 per cent increase year-on-year, contributed by revenue recognition from the sale of the 20 per cent reclaimed land in STP2A project to KWAP and higher sales of completed properties in STP1, namely the Andaman condominiums.