E&O to launch more projects in Penang soon

PETALING JAYA: Eastern & Oriental Bhd (E&O) intends to launch more projects in Penang in the near future, spurred by strong response to the group’s “The Meg” development.

The property developer said the high take-up rate achieved of more than 80% for The Meg since it started previewing in January 2022 reflected the strategic location of Andaman Island, Penang, and its ability to deliver the right product for the market.

“This increases our conviction to launch more projects in Penang in the near future,” it said in a filing with Bursa Malaysia yesterday.

Additionally, E&O said its hospitality segment continues to enjoy increasing occupancy and average room rates, in light of the robust tourism sector in Malaysia and the UK.

For the second quarter ended Sept 30, 2022, E&O reported a net profit of RM16,000, compared with a net loss of RM13.99mil in the previous corresponding period.

Revenue in the second quarter rose to RM95.02mil compared with RM33.88mil a year earlier. The group reported zero earnings per share, compared with a loss per share of 0.98 sen a year earlier.

For the six-month period ended Sept 30, 2022, E&O’s net loss shrank to RM1.63mil compared with a net loss of RM23.09mil in the previous corresponding period, while revenue grew to RM171.57mil from RM60.41mil.

E&O said the property segment recorded revenue of RM128.9mil in the period ended Sept 30, 2022, as compared to RM55.5mil in the same period a year ago, representing an increase of RM73.4mil or 132.3%.

“The increased revenue was mainly due to higher recognition from the land reclamation of Seri Tanjung Pinang 2A and the ongoing project The Meg in the current financial period.”

E&O said joint-venture (JV) projects namely Conlay, The Peak and Avira Garden Terraces contributed a total revenue of RM38.5mil in the period ended Sept 30, 2022, as compared to a revenue of RM11.1mil achieved in the previous corresponding period.

“After incorporating revenue recognised from JV projects, the group’s property segment recorded an aggregate revenue of RM167.4mil in the period ended Sept 30, 2022, as compared to an aggregate revenue of RM66.6mil in the previous corresponding period.”