Property News

Eastern & Oriental’s 3Q earnings rise to RM34m lifted by its property and hospitality segment

KUALA LUMPUR (Feb 22): Property developer Eastern & Oriental Bhd (E&O) has reported a 14.47% growth in its third quarter net profit, thanks to higher contributions from its property and hospitality segment, as well as higher unrealised foreign exchange gains.
Net profit for the quarter ended Dec 31, 2023 (3QFY2024) rose to RM34.44 million or 1.88 sen per share, from RM30.09 million or 2.07 sen per share a year earlier, the group’s stock exchange filing showed. Quarterly revenue surged 13.58% to RM92.23 million, from RM81.20 million in 3QFY2023. 
E&O said its hospitality segment’s revenue increased by 15% to RM77.4 million from RM67.3 million, attributed to higher average room rate and occupancy rate in the current financial period. The group expects this trend to persist toward the final quarter of financial year 2024 (4QFY2024).
Similarly, its property segment’s revenue rose by 20.7% to RM220.2 million in 3QFY2024 from RM182.4 million a year earlier, as a result of higher revenue recognition from the ongoing project, Arica. 
“Arica has demonstrated a strong sales performance, achieving a sales take-up rate exceeding 95% within the initial 10 months since its launch,” E&O said in its filing, adding that the group had also recently introduced 69 units of landed homes on Andaman Island. 
Going into 4QFY2024, E&O aims to launch another new product offering on Andaman Island, with 261 units of low-density luxury serviced apartments. The project is slated to launch in 1QFY2025.
For the nine-month period ended Dec 31, 2023 (9MFY2024), E&O’s net profit more than tripled to RM97.13 million or 5.85 sen per share, from RM28.45 million or 1.96 sen per share in 9MFY2023. Revenue for 9MFY2024 increased 19.28% to RM301.50 million, from RM252.77 million. 
At noon market break on Thursday, shares of E&O settled half a sen or 0.59% higher at 85 sen per share, with a market capitalisation of RM1.70 billion.
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Source: EdgeProp.my