E&O sees strong earnings in FY18 from projects

Group MD Kok Tuck Cheong pointed out the group would also be recognising profit from

KUALA LUMPUR: Eastern & Oriental Bhd expects a strong financial performance this year from the ongoing sale of its properties and the planned disposal of several major non-core assets.

The property developer has RM840.6mil in unbilled sales, which will be recognised progressively over the next two years.

It has also identified seven non-core assets including several parcels of land and retail malls to be divested.

Group MD Kok Tuck Cheong pointed out the group would also be recognising profit from the disposal of a portion of the company’s Seri Tanjung Pinang phase 2 (STP2) project in Penang to Kumpulan Wang Persaraan (Diperbadankan) (KWAP) for RM766mil.

As for the following year, the group targets to launch its developments for the SPT2A projects in early 2019, which Kok said will significantly contribute to its earnings thereafter.

STP2A is the first phase of the 760-acre STP2 reclamation project on the northeast coast of Penang island.

Kok said they had already applied for land titles, with the first batch of titles expected to be issued by the end of the year.

"Our target is to launch the project by early 2019. Following this, there will be significant contribution to the group's earnings," he told reporters after the group's AGM here on Tuesday.