EASTERN & Oriental’s quarter one financial year 2026 (1QFY26) results met expectations. About MYR2.2 bil worth of projects will be launched in FY26, and the notable one is the maiden launch of its Elmina project worth a gross domestic value (GDV) of MYR990 mil.
“Given the strong pipeline of projects, management is looking to achieve a sales target of MYR1.2 bil as it ramps up its launches in 2Q-3QFY26. This should help to sustain healthy earnings growth over the next 2-3 years,” said RHB Research.
Sequential revenue was lower primarily due to the disposal of Esca House in London worth MYR75.4 mil in 4QFY25, while development revenue was mainly underpinned by billings from ongoing projects, such as The Meg, Arica and Senna & Fera landed homes at Andaman Island.
Net gearing stood at 0.63x from 0.62x in 4QFY25, largely for the funding of construction and reclamation costs. 1QFY26 property sales reached only MYR153.5 mil vs MYR247.4 mil in 4QFY25. The weak sales were due to the lack of new launches during the quarter, and mainly driven by existing projects.
The Conlay project was the largest contributor (MYR68 mil), followed by Maris (MYR53.8 mil) and The Lume (MYR31.5 mil). Interestingly due to geopolitical concerns, Conlay saw strong interest from foreign buyers, mainly from Taiwan, since two quarters ago.
Meanwhile, the latest take-up rate for The Lume (GDV: MYR689 mil) has achieved 60% (from 54% in 4QFY25) and Maris (GDV: MYR690 mil), which was launched in Dec 2024, is now 45% sold (vs 39% in 4QFY25).
Management remains optimistic with the property market and has planned to launch MYR2.2 bil worth of projects in FY26. These include Senna and Fera Phase 3 & 4 (GDV: MYR306 mil) in end-August, maiden shop offices and 3-storey terrace homes in Elmina (total GDV: MYR990 mil) in 2Q-3QFY26 as well as 16E high-rise luxury condominium at Andaman Island (GDV: MYR1 bil) in 3QFY26.
While we think Senna and Fera as well as the Elmina landed homes and shop offices will be well-received, we think sales for 16E may be relatively slower given the average selling price of MYR1,200 per sq ft with unit sizes of 900-1,200 per sq ft.
Also, the take-up rate for The Lume and Maris, although different products, has not picked up significantly quarter-on-quarter. —Aug 27, 2025
Main image: E&O Bhd
