RHB Research sees new catalysts spurring sales at Eastern & Oriental’s Andaman Island
Category
🗞
NewsTranscript
00:00 Eastern and Oriental, or E&O, is off stock in focus this morning.
00:06 RHB Research keeping its buy call on the stock, with a target price of $0.88 up from $0.55
00:12 previously.
00:13 The counter last closed at $0.615.
00:15 Here's the good news for E&O.
00:18 It's a proxy for Penang Island Property Play, and RHB says it should benefit from the upcoming
00:24 easing of Malaysia My Second Home requirements.
00:27 And there's the extension of the Bayan Lepas LRT line to Tanjong Pungah, and this final
00:32 station is going to be just 2.5km away from Andaman Island.
00:37 RHB thinks this new transport infrastructure will likely spur investment opportunities
00:42 of E&O's projects going forward.
00:45 Its fundamentals and earnings prospects have also improved, especially after new major
00:49 shareholder Datuk T. Eng Ho took over the company in 2021.
00:54 Note that E&O's first service apartment tower, the MEG at Andaman Island, was fully sold
01:00 in the middle of the year.
01:01 The second block, Arika, is now 85% sold.
01:05 Given the successful launches at Andaman Island, E&O's unbilled sales hit a high of RM999.3
01:12 million as at the first quarter of FY24.
01:15 So what does the street say?
01:17 According to Bloomberg data, no other research house has covered E&O in the past six months.
01:22 So that's one buy, target price $0.88.
01:26 E&O ended yesterday at $0.615, so that's a potential upside of about 43%.
01:31 [MUSIC]