KUALA LUMPUR: AmInvestment Bank Research has upgraded lifestyle developer Eastern & Oriental Bhd
to Buy from Hold with a revised fair value of RM2.01 per share.
It also raised its FY19 earnings by 67% to RM107.8mil while introducing FY20-21 earnings at RM108.8mil and RM111.8mil respectively.
The research house said on Friday that E&O has several ongoing key projects, namely Ariza Seafront Terraces @ STP1, Penang, the final tower of Andaman @ Quayside, Penang and Avira Garden Terraces @ Iskandar Johor.
For FY19, E&O expects to launch two projects at premium locations in KL namely Conlay Tower @ Jalan Conlay and The Peak @ Damansara Heights.
Meanwhile, the group’s unbilled sales of RM480.7mil will be progressively recognised over FY19 and FY20.
It said the key highlight for E&O is the much anticipated STP2 @ Penang Island, a masterplan which will be phased over 15- 20 years.
STP2, located in the waters to the east of the first phase covering an area of 760 acres, will be divided into three phases namely STP Phase 2A, Phase 2B and Phase 2C.
“We like E&O for its prime landbank, including reclamation tights on the Penang Island, and strong take-up for new property launches.
“Meanwhile, E&O’s long-term visibility remained bright with STP2 being one of the key highlights going forward,” it said.
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