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.


Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

China's ICBC, world's biggest bank, posts 3.3% profit rise in first half
Citaglobal upbeat on growth with RM1.4bil order book
BWYS upbeat on FY26 prospects amid capacity expansion
OSK posts higher net profit of RM143.41mil in 2Q
Chip veteran raises Malaysia E&E export forecast to US$223bil
Axiata 1H patami more than doubles to RM717.2mil
AI adoption powering industrial profit growth
Sedania returns to profitability in FY26
Farm Fresh posts net profit of RM26.82mil in 1Q amid elevated costs
Malaysia's international reserve assets at US$132.07bil as of end-July

Others Also Read