Eastern & Oriental’s 1Q profit up 14%

• In terms of prospects, the company said it is finalising plans to introduce its first sea-facing residential apartment project on the Andaman Island in Penang and is aiming for that to be launched towards the end of the year.

KUALA LUMPUR (Aug 26): Eastern & Oriental Bhd (KL:E&O) reported a 13.9% increase in its net profit to RM37.52 million for the first quarter ended June 30, 2024 (1QFY2025), from RM32.95 million a year ago, as improved property segment contribution helped offset a weaker healthcare segment.

Revenue for the quarter surged 93.9% to RM165.65 million from RM85.41 million in the previous year’s corresponding period, attributable to higher revenue recognition from ongoing projects which includes The Meg, Fera and Senna.

The group’s hospitality segment recorded a slight decrease in operating profit to RM4.4 million from RM5 million a year earlier, as revenue remained flattish at RM23.6 million.

In terms of prospects, the company said it is finalising plans to introduce its first sea-facing residential apartment project on the Andaman Island in Penang and is aiming for that to be launched towards the end of the year.

“Our latest project, The Lume, has also shown strong sales performance, and we expect this positive momentum to carry forward in the coming months," said E&O managing director Kok Tuck Cheong in a statement.

It also revealed that its Senna and Fera projects have achieved a combined sales take-up rate of 83% within six months of launch.

"We are on track to launch more than RM1 billion of new projects in the financial year ending March 31, 2025," Kok said.

As for its hospitality business, the company said it will focus on sustaining the current high average occupancy and room rates, while delivering exceptional experiences that are synonymous with the E&O brand.

At Monday’s closing, shares in E&O closed down two sen or 2.3% to 84 sen, giving it a market value of RM1.77 billion. Year to date, the stock is up 46.1%.

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