A brighter horizon is seen by Eastern & Oriental Bhd (E&O) which is optimistic over the prospects of its property and hospitality segments after reaping a a strong earnings recovery.
In a filing with Bursa Malaysia today, the group said it is excited over its upcoming launches given the strategic location and well-accepted product offerings.
E&O said higher revenue recognition from The Meg, its ongoing project on Andaman Island, Penang, and land reclamation of Seri Tanjung Pinang Phase 2A (STP2A) have been the main contributors to the higher revenue during the current financial year.
The Meg which comprises 1,020 apartments and 14 shop units, is more than 95% sold since it started selling the project in January 2022, it said.
As for its hospitality business, E&O added that it is enjoying historical high occupancy rate and average room rate on the back of continued strong recovery in tourism and business travel.
For the third quarter ended Dec 31, 2022, E&O posted a net profit of RM30.09mil, which was nearly four times the net profit of the previous corresponding quarter.
The group’s earnings per share was 2.07 sen, up from 0.54 sen in the comparative quarter.
This was off the back of revenue of RM81.2mil, about 3.5 times the revenue of RM23.38mil in 2QFY22.
Cumulatively over three financial quarters, the group recorded a net profit of RM28.45mil, which compares to a net loss of RM15.26mil in the 9MFY22 period.
E&O said the increase was mainly attributed to the properties segment which registered an increase of RM116.6mil and the hospitality segment which registered an increase of RM50.7mil.
The group reported revenue of RM252.77mil, which was 201.7% higher than RM83.79mil in the year-ago period, on the back of higher revenue recognition from properties and hospitality segments, lower finance cost and lower loss from share of results of joint ventures.
