KUALA LUMPUR: Savvy investors are capitalising on opportunities in Bursa Malaysia while the nation is controlling its movements.
Since late March, Eastern & Oriental Bhd (E&O) has seen Amazing Parade Sdn Bhd steadily raising its shares to emerge as the single largest shareholder of the listed developer with an over 20 per cent stake.
Amazing Parade is the private vehicle of E&O non-independent and non-executive director Datuk Tee Eng Ho and his brother Tee Eng Seng.
While there is nothing unfamiliar in shareholders raising their stake at the opportune time, maybe it is time that other shareholders give E&O a relook.
What do the Tee brothers have in mind for E&O?
Eng Ho is chairman of Kerjaya Prospek Group Bhd, while Eng Seng is executive director of the company, which is involved in engineering and construction services.
Kerjaya Prospek recorded a 1.4 per cent increase in net profit to RM140.21 million for the year ended December 31 2019, from RM138.34 million in2018, although revenue reduced to RM1.05 billion from RM1.06 billion.
Despite the soft property market, industry observers said the fact that the Tee brothers had taken a position with E&O demonstrated potential for the company.
Most of E&O's projects were at very prime locations with the potential to unlock value over the long-term, they noted.
Hence it should not be bogged down by the longer gestation cycle that will affect the property sector.
A case in point is Seri Tanjung Pinang Phase 2A, which is in an ideal situation as the likes of Retirement Fund Inc or KWAP are seeing to unlock value in the area.
The project has been earmarked for long-term sustainable development.
Another example is The Conlay, which is at the intersection of Jalan Conlay and Jalan Kia Peng.
The Conlay, with a total gross development value of about RM1 billion, is being developed with Mitsui Fudosan, one of Japan's largest property developers.
The latter is likely to bring in overseas buyers especially from Japan.
Malaysia had done well in terms of public healthcare proactiveness with the pandemic, and this should resonate well with Japanese buyers, the industry observers said.
E&O also has another project with good mid-term prospects in the form of The Peak, which is also developed via a joint venture with Mitsui Fudosan.
It comprises 54 units of 3-storey condo-villas in Damansara Heights with a total GDV of about RM350 million.
"These could be some of the core reasons why the Tee brothers have taken a position and increased their shareholding in E&O," one industry observer said.
E&O also has good traction in terms of analysts, as many are still tracking it, with most calling a "neutral" and a few calling a "downgrade", and at least two "buy" calls.
"Hence at a time like this, investors should find E&O a resilient counter against a sector whereby only the strong will survive, particularly over the next one year," the observer said.