Company Update

Although E&O can realise an upfront gain from the JV with Mitsui Fudosan for the Jalan Conlay project, the sector fundamentals remain weak as banks continue to tighten mortgage lending. Maintain NEUTRAL with a lower TP of MYR2.20 (5% upside). Meanwhile, the award of the STP2 reclamation tender is now delayed to May/June from the initial target of March as bidders requested for time extension.

Source: RHB Research - 23 Mar 2015