Tuesday, October 13, 2009

Blog Research : Eastern and Oriental Berhad

The Eastern and Oriental brand, through the heritage Eastern and Oriental Hotel, carries the hallmark of timeless elegance, luxury, history and richness in tradition.This reputation is nurtured within the Eastern and Oriental Group, which focuses on three core business activities; namely Hospitality and Lifestyle, Property Development and Property Investment. Its business ventures are strongly supported by an established Eastern and Oriental brand capital.

Eastern and Oriental Berhad

---Eastern and Oriental Property Development Berhad

---Eastern and Oriental Hotel--establishment by the Sarkies Brothers in 1885

---Lone Pine Hotel--The first hotel built along Penang Island’s in 1948

---food and beverage --The Delicious Group

Eastern and Oriental Property Development Berhad

Past Project-

-Dua Residency-Completed in April 2007

-Seventy Damansara-Completed in January 2006

-Idamansara-Completed in June 2007

Current Project:

Centrally located ,Chic Metro Living , 1.2-acre ‘Central Park’,2-storey Retail Annexe.

-Seri Tanjung Pinang

Semi-D Homes

Marina and retail at Waterside , Condominiums,Commercial ,Recreational park ,Multi-Islands

REVENUE('000) Net Profit('000) EPS
2001Yr 79,398.00 8,779.00
2002Yr 91,156.00 24,338.00 -0.11
2003Yr 33,449.00 32,269.00 -0.14
2004Yr 117,882.00 20,553.00 0.09
2005Yr 21,130.00 15,341.00 0.07
2006Yr 270,301.00 23,058.00 0.1
2007Yr 518,444.00 61,178.00 0.15
2008Yr 516,399.00 128,854.00 0.24
2009Yr 304,449.00 37,276.00 -0.06
2010Q1 0.007

Analysis:The Company

**Turning Profit in financial 2010 1Quarter with EPS 0.007

**will launch more than 4billion worth project in future 2-4 years at Klang Valley and Penang.

**Own 1483 acres land in K.L and Penang.

**Unbilled sales of RM310 million, should reap pre-tax profit margins of 25 per cent and this will be booked over the next two to three years.

**St Mary Residences with good sales results.The launches include the Jalan Conlay condos with a GDV of RM800 million and the commercial building next to St. Mary Residences, situated in the heart of the Golden Triangle, with a GDV of RM500 million.

**Seri Tanjung Penang 1000 acres land for current and future development. Locate at Strategic growth area with high potential development in future, a comprehensive mixed development township located 5km northwest of George Town and adjacent to Gurney Drive. The project will generate profit in coming financial year together take advantage of value appreciation of land in the area.

**Company has launched 33 link houses in Seri Tanjung Penang priced from RM1.1 million upwards, which were snapped up within hours.Next launch 33 units of marina serviced apartments valued at more than RM30 million.The biggest launch of the year will be condominiums with RM1.8 billion gross development value (GDV) in total.

CIMB Research:The bottom line of Eastern and Oriental Berhad should return to the black in 2010 and jump 66 per cent in 2011 and 57 per cent in 2012
Target Price MYR 2.18

**For me, very confident with the land value of Penang Island especially those seaside area, the land value should be appreciate significantly in future 10-15 years. Eastern and Oriental Berhad owns a lot of land in Penang. If you are searching for high potential growth stock, seeking for long term investment, this counter may be a good choice.