Ongoing developments on Andaman Island by E&O

Eastern & Oriental Bhd (E&O) remains confident of achieving its RM1 billion property sales target for FY2027, following a strong start to the financial year.

The property developer recorded RM356 million in property sales for the first quarter ended June 30, more than double the RM? recorded a year earlier. Penang remained its key market, contributing 72% of quarterly sales, while the Klang Valley accounted for the remaining 28%.

Managing director Kok Tuck Cheong said the group expects continued economic and population growth in Penang to support property demand. He highlighted the state’s limited land availability and George Town’s role as a commercial, tourism and financial hub as key factors underpinning the outlook.

“Land scarcity” is also expected to encourage existing homeowners to upgrade, further supporting demand for E&O’s projects.

Penang accounted for 77% of the group’s RM1.72 billion unbilled sales as at June 30, with the Klang Valley contributing the remaining 23%.

Kok said E&O expects its performance to strengthen in FY2027 if the current momentum continues, following a record FY2026. The group is also expected to benefit from Malaysia’s economic expansion, growth in the northern corridor and a potential recovery in the global semiconductor industry.

For 1QFY2027, E&O’s net profit rose 28% year-on-year to RM58.1 million, from RM45.4 million previously, while revenue increased 53.4% to RM281.5 million.

The strong quarterly performance follows a record FY2026, when net profit climbed 31.2% to RM221.21 million, while revenue reached an all-time high of RM867.64 million.

E&O is also set to launch two new projects in FY2027. Senna & Fera Phase 5 will comprise 46 landed homes with an estimated gross development value (GDV) of RM197 million, while the first phase of Plot 16A-1 on Andaman Island will feature 440 serviced apartments with an estimated GDV of RM680 million.

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