KUALA LUMPUR: Lifestyle property developer Eastern & Oriental Bhd’s (E&O) net profit rose to RM116.26 million in the financial year ended March 31, 2018 from RM90.92 million a year earlier.
The group also achieved a pre-tax profit of RM197.27 million against RM125.30 a year ago, primarily driven by higher operating profit from the property segment.
"This is on the back of higher revenue recognised on the progress of work done from the land reclamation projects in the second phase of Seri Tanjung Pinang (STP 2A) in Penang and higher sales from completed properties,” it said in a filing to Bursa Malaysia today.
Revenue jumped to RM981.27 million from RM704.76 million, mainly due to an increase of RM284.91 million registered by the property segment.
On the group's prospect, E&O believed the policies driving economic growth would become clearer over the next few months following the conclusion of the 14th general election.
"We are of the opinion that house buyers, who were holding back buying, will be in the market to purchase their homes. Properties in strategic locations by reputable developers will possess an advantage (over others) and sustain buyer interest," it added.
It said the group was well positioned to tap into opportunities when the market recovers as the reclamation of STP2A will be completed soon.
"The first launch on STP2A is expected in the first half of 2019. Besides STP2A, we will continue to focus on selling down our inventory with more innovative pricing packages," it added.