E&O rebuts report

PETALING JAYA: Eastern & Oriental Berhad (E&O) has issued a statement over an article which appeared in The Star Online on March 7, 2012, entitled "Malaysia's Naim Holdings lags on analyst revisions".

The statement from E&O group corporate strategy director Lyn Chai follows:

"Eastern & Oriental Berhad (E&O) would like to take this opportunity to share with your readers the true performance of the company to provide a more balanced and accurate report that can be substantiated by fund managers and analysts.

* Local and foreign analysts who cover our stock, including some who have followed us for several years, reaffirm that the company's estimated earnings per share (EPS) for the financial year ending March 31 2012 remains between RM0.08 and RM0.11.

* E&O recently announced a 300% year-on-year increase in net profit to RM83.6mil for the third quarter ended Dec 31 2011.

* Following the strong third-quarter results announcement the analysts who covered E&O raised their target price: CIMB - RM1.77; Kenanga - RM1.49; and Hwang-DBS - RM1.80

* In terms of earnings sustainability, E&O as at Jan 31 2012 has achieved unbilled sales (completed property sale transactions and bookings that are yet to be recognised in the books) amounting to nearly RM950mil which will be recognised within the next two to three years.

* E&O continues with its property launches with the most recent being the first tower of the RM1.2bil Andaman at Quayside condominiums in Penang. In the heart of Kuala Lumpur's central business district, E&O's highly-successful St Mary's Residences will be completed this year and riding on this success, new launches are being planned. Down south, the company will be launching its first product within the 210-acre RM3bil masterplanned Medini Integrated Wellness Capital in the next 12 months.

* E&O also has a renowned hospitality and lifestyle arm that is expanding and contributes consistently to the group's earnings, and is the foundation on which E&O's brand for exclusivity is derived.

Based on these facts and figures, it is more than evident that E&O is in a robust earnings sustainability position. Most significantly, E&O is on an upward momentum to further strengthen its foothold as Malaysia's leading luxury lifestyle property development group."

By The Star