Latest news with #Eastern&OrientalBhd
New Straits Times
17-07-2025
- Business
- New Straits Times
E&O shrugs off SST hike, sets sights on upscale expansion
KUALA LUMPUR: Eastern & Oriental Bhd (E&O) has assured that its current property developments, including the newly launched Conlay Signature Suites, will not be affected by the revised Sales and Services Tax (SST), although future projects will inevitably factor in the higher tax regime. Managing director Kok Tuck Cheong said all of the group's current developments, including the newly launched Conlay Signature Suites, were sold under fixed-price contracts before the SST revision and therefore remain unaffected. "SST is going to affect everyone in business. Ultimately, end-users and consumers will share some of the burden," Kok said at the launch of Conlay Signature Suites here today. He added that while future developments will be guided by updated government policies, E&O's focus on the luxury market means its customers are driven more by quality than by price. While acknowledging that SST may create cost pressures across the broader property market, Kok noted that E&O operates in a niche, premium segment where buyers in the premium segment prioritise distinctive architecture, thoughtful layouts, refined finishes, and exclusive amenities. "For signature projects like ours, price is not the key factor. Buyers in this segment are discerning; they look for quality finishes, iconic architecture, well-considered layouts, and lifestyle-driven amenities. These are what captivate buyers in this demographic." Despite broader concerns over the rising cost of construction and potential pressure on margins, Kok remained confident in the company's position, citing strong demand for design-led, high-end residences – even amid global economic uncertainties and geopolitical tensions. Located at the intersection of Jalan Kia Peng and Jalan Conlay, Conlay Signature Suites is a joint development with Japan's Mitsui Fudosan. It is the final phase of E&O's landmark luxury development, Conlay. Conlay is a 51-storey luxury serviced apartment with a total of 491 units, first launched in 2019. Conlay Signature Suites is positioned on the upper floors of the tower, featuring 194 fully furnished freehold units ranging from 635 sq ft to 3,617 sq ft. Prices start at RM1.52 million and reach up to RM12 million for the largest penthouse units. "Every detail of the Signature Suites reflects our deep commitment to hospitality and craftsmanship. We believe this offering will resonate with those seeking both a legacy address and a lifestyle investment," Kok said. He noted that E&O's focus remains on delivering distinctive, high-end developments, such as Conlay Signature Suites, and its upcoming project in Elmina, located on the fringe of the Kuala Lumpur city boundary, which is scheduled to be unveiled in the fourth quarter of this year. "The next project will be a headline-grabbing one," Kok teased, without revealing further details. Looking ahead, Kok believes Malaysia's steady economic fundamentals and growing appetite for premium properties will continue to support E&O's strategy. "We remain positive because our projects are designed to meet the expectations of our target buyers. Even Malaysians today are increasingly willing to pay for distinctive designs and iconic structures," Kok said.
The Star
03-06-2025
- Business
- The Star
E&O's earnings outlook brightens on RM2bil project pipeline
PETALING JAYA: Eastern & Oriental Bhd (E&O) has about RM2bil worth of projects slated for rollout over the next 12 months which is expected to generate about RM850mil sales in its financial year 2026 (FY26), analysts say. RHB Research has raised its FY26 and FY27 earnings outlook for the company by 8% and 7%, respectively. E&O's unbilled sales rose to RM1.5bil from RM1.46bil in the third quarter of FY25 (3Q25). The research house maintained its 'buy' call on the stock but lowered its target price to RM1.17 from RM1.38 per share, citing persistent market volatility arising from regulatory changes that are expected to affect global trade and sentiment. The new target price is now based on a 50% discount to the property developer's revalued net asset value, compared with 40% previously. Upcoming property launches include its Senna and Fera homes in Penang with gross development value of RM306mil in July or August, maiden shop offices and three-storey terrace homes in Elmina development in Selangor, as well as a new block of mid-range waterfront service apartments on Andaman Island, Penang. E&O's results for its fourth quarter of financial year ended March 31 once again beat the research house's expectations. Earnings continued to be underpinned by ongoing projects and were boosted by the disposal of Esca House in London. Revenue remained stable on a quarter-on-quarter basis, supported by billings from ongoing projects such as The Meg, Arica, and Senna and Fera landed homes at Andaman Island, as well as the RM75mil sale of Esca House. However, headline pre-tax profit for FY25 was skewed by an unrealised foreign-exchange loss of RM29mil. Excluding this, FY25 core earnings would have been RM210mil versus RM100mil in gearing rose to 0.62 times from 0.59 times in the previous quarter. No final dividend was declared, with the FY25 dividend per share amounting to only one sen.
The Star
28-05-2025
- Business
- The Star
Strong sales revenue lifts E&O's 4Q net profit to RM69.85mil
KUALA LUMPUR: Driven by a strong performance in its properties segment, Eastern & Oriental Bhd (E&O) has ended the financial year 2025 (FY25) on a high note. The property developer posted a net profit of RM69.85mil in the fourth quarter ended March 31, 2025 (4QFY25), nearly double the net profit of RM36.48mil in the year-ago quarter. This lifted earnings per share to 2.81 sen as compared to 1.87 sen in 4QFY24. Revenue in the quarter under review leapt to RM236.66mil from RM121.33mil in the comparative quarter. Over the full financial year, E&O reported a cumulative net profit of RM168.65mil against a net profit of RM133.61mil in FY24, while revenue jumped to RM741.08mil from RM422.83mil in the previous year. According to the group, the positive performance was largely driven by the strong sales from the properties segment, which registered a revenue expansion of 102% year-on-year to RM630.5mil, equivalent to 85.1% of the group's total revenue. Additionally, joint venture projects such as Conlay, The Peak, and Avira Garden Terraces contributed RM428.9mil in revenue, marking a 61.5% increase. On an aggregate basis, the total revenue generated by the properties segment, including joint ventures, reached RM1.06 billion. E&O managing director Kok Tuck Cheong said the performance reflects the impact of the group's strategic direction and focus on sustainable growth. He noted there are five ongoing projects on Andaman Island with an estimated gross development value of RM2.7bil. He added there are plans to launch four developments comprising a mix of residential and retail properties strategically located on Penang Island and Klang Valley. "The group remains committed to delivering high-quality developments that cater to the expectations of discerning homebuyers and investors, while enhancing community living and driving long-term value creation,' he said.
New Straits Times
28-05-2025
- Business
- New Straits Times
E&O ends FY2025 with 95pct revenue surge on strong property, JV sales
KUALA LUMPUR: Eastern & Oriental Bhd (E&O) saw a strong finish to its financial year ended March 31, 2025 (FY2025), with fourth-quarter revenue surging 95.1 per cent year-on-year to RM236.7 million, up from RM121.3 million. Pre-tax profit rose 49.3 per cent to RM72.1 million, while net profit nearly doubled to RM74 million. For the full year, revenue climbed 75.3 per cent to RM741.1 million, and net profit increased by 28.8 per cent to RM181.7 million. Excluding unrealised forex losses and one-off items, recurring net profit stood at RM210.5 million, up 95 per cent. E&O said that the strong performance was largely driven by the property segment, which contributed RM630.5 million in revenue, a 102 per cent increase and 85.1 per cent of total group revenue. Joint venture projects, including Conlay, The Peak, and Avira Garden Terraces, contributed RM428.9 million in revenue, marking a 61.5 per cent increase. On an aggregate basis, the total revenue generated by the properties segment, including joint ventures, reached RM1.06 billion. Managing director Kok Tuck Cheong said, "We are encouraged to end FY2025 on a strong note. Our performance reflects the impact of our strategic direction and focus on sustainable growth." At Andaman Island, E&O currently has five ongoing projects with a total gross development value (GDV) of RM2.7 billion. "The group remains committed to delivering high-quality developments that cater to the expectations of discerning homebuyers and investors while enhancing community living and driving long-term value creation," Wong said. Looking ahead, the group plans to launch four residential and retail projects in Penang and the Klang Valley in Q2 or Q3 of FY2026. E&O's hospitality segment also remains steady, and the group expects stronger performance in the new financial year, supported by hotel refurbishments, increased international flights, and expanded visa-free travel between Malaysia and China.
