Based on current rugi eps and malaysia economic condition, today share price 0.61 consider overvalue. For my opinion, pls only consider this stock at 0.50 .......
Eastern & Oriental (E&O) recorded a 3QFY22 net profit of RM7.8m, swinging back from the net loss of RM14.0m a quarter ago, with better margins achieved and improvements in the hospitality segment with the lifting of travel ban for local tourists. The hospitality segment’s performance was also bolstered by a one-off recognition on gain on lease modification of RM9.3m during the quarter, and waiver of rental of RM11.8m. Taking out these one-off items, Group net loss YTD is estimated at RM25.7m, which is 61% and 50% of our and consensus forecast. As mentioned earlier, we only expect the Group to see earnings recovery in FY23, underpinned by projects such as STP2A (maiden launch, “The Meg” was soft-launched recently) and The Peak (JV with Mitsui Fudosan, RM348m GDV. We adjust FY22 earnings upwards by 54% to account for one-off gains and nascent recovery for the hospitality segment. Separately, the Group has also proposed a rights issue of ICULS (1 ICULS for every 2 existing ordinary shares in E&O) to raise between RM178m and RM363m, mainly to be used for existing and future projects. Pending the completion, we maintain our Neutral call with TP unchanged at RM0.60, pegged at ~70% discount to RNAV, excluding STP2B&C.
3QFY21 Group revenue dropped 36% YoY due mainly to the absence of new launches, and also slower-than-expected sales in on-going projects (mainly Conlay, KL). The properties segment recorded a drop of 56.3% YoY to RM65.8m, primarily due to a sale of land of RM55.0m last year and lower sales of completed properties YTD. Meanwhile, the hospitality segment recorded revenue of RM16.6m or increase of 25.8% YoY due to higher revenue generated following the lifting of interstate travel ban for local tourists. The segment recorded an operating profit of RM10.8m YTD, mainly lifted by the recognition of gain on lease modification of RM9.3m and waiver of rental of RM11.8m.
Proposed rights issue. The Group proposed a renounceable rights issue of up to RM363m in nominal value of 5-year 3.80% irredeemable convertible unsecured loan stocks (ICULS) at 100% of their nominal value of RM0.50 each, on the basis of 1 ICULS for every 2 existing ordinary shares in E&O. Assuming maximum scenario, it plans to utilize 80% of the proceeds to embark on several new development projects and reclamation of Andaman Phase 2B and 2C. We understand that the fixed funding cost of 3.8% per annum (p.a.) is comparable to the Group’s current average borrowing cost of 3.77% p.a. The exercise is expected to be completed by 4QCY22.
As rule of thumb, no matter how attractive is the fair price, never buy a stock that is on down trend. Just look at the share price, is been on down trend since 2014. Even if you buy today, you never know how long your capital will stuck in this stock for how long. Stay away
Coupon rate of 3.8% p.a. for the ICULS is the not attractive especially in the current environment of high and increasing interest rate. Worth mentioning that there are other similar securities currently listed that offer higher yields and better future biz prospects.
Will be nicer if we can know soon for ppl to make judgement . Can help us in decision making. But if you prefer to wait, I am ok with it. Good luck and huat chai!
JCGan888, don't worry, pls refer to the announcement : Renounceable rights issue of up to RM255,764,462 in nominal value of 5-year 3.8% irredeemable convertible unsecured loan stocks ("ICULS") at 100% of its nominal value of RM0.235 each on the basis of 3 ICULS for every 4 existing ordinary shares in Eastern & Oriental Berhad ("E&O") held as at 5.00 p.m. on 20 February 2023 ("Rights Issue of ICULS")
E&O faces new survival challenges. Now PSI seems to be coming to life. New growth area in Penang shifted to South/ Southeast near to Penang bridges and Batu Kawan.
3. Group's Prospects The Meg which comprise 1,020 apartments and 14 shop units is more than 95% sold since we started selling this project in January 2022. We are excited with our upcoming launches given the strategic location and well accepted product offerings. While Penang will form the bulk of our future launches, the hospitality segment is enjoying historical high occupancy rate and average room rate on the back of continued strong recovery in tourism and business travel.
Oh, a former director who retired sold 8.8 mil shares in just 2 days 20&21 Feb. Think this was the main reason why it went so much down that two days. Expecting upward movements going forward.
E&O总经理郭德昌(左)和执行主席Datuk Tee Eng Ho(Low Yen Yeing / The Edge拍摄) 吉隆坡(2月22日电)——房地产开发商东方和东方集团(Eastern & Oriental Bhd,简称E&O)的高负债对该集团而言影响甚微,因为该集团预计通过最新的筹资提议和销售所产生的现金将支持其下一个增长阶段。
a lot of wayang ctrs nowadays tat to trap investors' hard earns. As v r not $ printers, got to b very cautious not being tight down tat cry till no tears....!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ivanlau
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Posted by ivanlau > 2021-07-07 17:02 | Report Abuse
Based on current rugi eps and malaysia economic condition, today share price 0.61 consider overvalue. For my opinion, pls only consider this stock at 0.50 .......