KUALA LUMPUR: Eastern and Oriental Bhd (E&O) is targeting to sell about RM300 million worth of completed units in this financial year ending March 31, 2020, (FY20) to monetise them and reduce the inventory level further.
Managing director Kok Tuck Cheong said the group’s effort to reduce its inventory had been encouraging as it successfully brought it down to RM215 million (RM416 million in market value) for FY19 from a high of RM537 million in September 2016.
“E&O aims to reduce it further to RM58.36 million in FY20. For the last three years, we have been focusing on selling our completed units and have not launched any new project,” he told reporters after the company’s annual general meeting today.
The unbilled sales for FY19 stood at RM61 billion, he said, adding that it was hoped that the proposed projects worth in excess of RM1.5 billion to be launched over the next two years would replenish the unbilled sales.
On E&O’s hospitality segment, he said the hotel business was doing well with an occupancy rate of over 80%.
Kok said the E&O Hotel in Penang was now undertaking refurbishment whereby the group had already allocated about RM40 million in capex in FY20 for the purpose.
On talks to sell off the Straits Quay Mall in Seri Tanjung Pinang in Penang, Kok said it was still not an opportune time to secure the best value. – Bernama
