KUALA LUMPUR: Property developer Eastern & Oriental Bhd (E&O) is lining up RM2.2 billion worth of property launches for the remainder of 2025, which includes the upcoming Elmina retail shops, Elmina landed homes, Senna and Fera, as well as Andaman Island Plot 16E.
Managing director Kok Tuck Cheong said he expects a heavier launch schedule in the second half of the financial year (FY26), with Malaysians remaining the key buyers for its Andaman projects.
He added that Chinese buyers are showing stronger interest in the Klang Valley.
“Sales target for FY26 should not be less than RM1.2 billion. It should be higher than that. My internal target for the team is higher than that,“ he said during E&O’s first-quarter FY2026 (Q1’26) analyst briefing today.
E&O’s unbilled sales stood at RM1.34 billion as of Q1’26, which will be progressively recognised between FY26 and FY29.
The property developer said it is progressing steadily with its flagship Andaman Island township in Penang, which features multiple ongoing phases. These include The Meg, a 1,034-unit serviced apartment project with a gross develoment value (GDV) of RM691 million slated for completion in April 2026.
Arica, a 380-unit apartment block with a GDV of RM415 million, is targeted for March 2027.
The Lume, a 261-unit luxury condominium with a GDV of RM689 million, and Maris, a 524-unit sea-facing serviced apartment project with a GDV of RM690 million, are both scheduled for completion by the end of 2028.
E&O’s landed offerings include Senna and Fera Phases 1 and 2, comprising 69 semi-detached and terrace homes, to be completed by January 2026, as well as Phases 3 and 4, with 68 similar units planned for completion in August 2027.
Outside Penang, E&O is jointly developing The Peak in Damansara Heights with Mitsui Fudosan. The RM369 million project comprises 54 exclusive freehold residences adjacent to the National Palace and is expected to be completed by December 2025.
On E&O’s balance sheet, shareholders’ funds rose by RM48 million during the quarter, while net gearing remained stable at 0.63 times.
The group reaffirmed its sustainability agenda, with Senna and Fera Phases 3 and 4 recently awarded the GreenRE Platinum Provisional Certification.
Kok said the recent disposal of land parcels in London aligns with the company’s strategy to preserve capital value while strengthening its balance sheet through the realisation of cash resources. “This prudent move enhances the group’s financial flexibility and better positions us to capitalise on future growth opportunities.”
The property developer posted a 21.1% jump in net profit to RM45.4 million for the quarter ended June 30, 2025 (Q1’26), from RM37.5 million a year earlier, lifted by stronger contributions across all segments, particularly residential and commercial property development as well as its investment portfolio.
Revenue rose 10.8% year-on-year to RM183.5 million from RM165.7 million in Q1’25, underpinned by sales and progress at ongoing projects.
The company said the property segment remains the main growth driver. The segment recorded a revenue of RM157.1 million, a 12% year-on-year increase, and accounted for 86% of group revenue.
Operating profit rose 9% to RM57.4 million.
For the hospitality segment, revenue and operating profit increased by 6% and 10%, respectively, underpinned by higher average room rates and occupancy rates at the E&O Hotel in Penang.