The Lume @ Andaman Island, Penang by E&O
Eastern & Oriental Bhd is bullish on the Penang market, where it is based, and anticipates better property sales in its current financial year ending March 31, 2025 (FY2025).
The group is targeting around RM1 billion sales in FY2025, on the back of new launches worth about RM1.3 billion in gross development value and existing property projects, according to managing director Kok Tuck Cheong. (pictured)
The group achieved RM870.6 million property sales in FY2024, up 28.5% from RM677.3 million in FY2023. So far, it has secured RM162.5 million property sales in the first quarter ended March 31, 2025 (1QFY2025).
Unbilled sales came in at RM1.35 billion — its highest on record — which the group will progressively recognise over FY2025 and FY2026.
“Property sector in Penang is going to enjoy phenomenal growth arising from the FDIs [foreign direct investment] that are being invested in the semiconductor, new offerings and projects, coupled with a strong improvement in tourism,” Kok said during the company’s quarterly result briefing here.
“These bode very well for wealth creation and combined with the fact that there will be population growth and urban migration, there will be a lot more what I call ‘spending power’ to invest in residential dwellings,” he added.
E&O’s quarterly revenue soared 93.9% to RM165.65 million in the first quarter ended June 30, 2024 (1QFY2025) from RM85.41 million in 1QFY2024, mainly due to recognition of sales from its projects located in the Andaman Island Phase 1, which comprises Senna, Fera, Arica and The Meg.
This led to a 13.86% increase in its 1QFY2025 net profit to RM37.52 million, from RM32.95 million in 1QFY2024. The property segment contributed 85% of its total revenue in 1QFY2025, with the remaining from its hospitality and investment, and other segments.
E&O senior general manager in the corporate investment and planning division Yeow Yeonzon said group earnings growth is actually stronger as 1QFY2024 recorded an unrealised foreign exchange gain of RM27.5 million.
Source: EdgeProp.my
