27/08/2025

BIZ & FINANCE WEDNESDAY | AUG 27, 2025

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Maybank posts improved Q2 and six-month earnings

E&O lines up RM2.2b property

launches for rest of 2025

KUALA LUMPUR: Property developer Eastern & Oriental Bhd (E&O) is lining up RM2.2 billion worth of property launches for the remainder of 2025, which includes the upcoming Elmina retail shops, Elmina landed homes, Senna and Fera, as well as Andaman Island Plot 16E. Managing director Kok Tuck Cheong said he expects a heavier launch schedule in the second half of the financial year (FY26), with Malaysians remaining the key buyers for its Andaman projects. He added that Chinese buyers are showing stronger interest in the Klang Valley. “Sales target for FY26 should not be less than RM1.2 billion. It should be higher than that. My internal target for the team is higher than that,“ he said during E&O’s first-quarter FY2026 (Q1’26) analyst briefing yesterday. E&O’s unbilled sales stood at RM1.34 billion as of Q1’26, which will be progressively recognised between FY26 and FY29. The property developer said it is progressing steadily with its flagship Andaman Island township in Penang, which features multiple ongoing phases. These include The Meg, a 1,034-unit serviced apartment project with a gross develoment value (GDV) of RM691 million slated for completion in April 2026. Arica, a 380-unit apartment block with a GDV of RM415 million, is targeted for March 2027. The Lume, a 261-unit luxury condominium with a GDV of RM689 million, and Maris, a 524-unit sea-facing serviced apartment project with a GDV of RM690 million, are both scheduled for completion by the end of 2028. E&O’s landed offerings include Senna and Fera Phases 1 and 2, comprising 69 semi detached and terrace homes, to be completed by January 2026, as well as Phases 3 and 4, with 68 similar units planned for completion in August 2027. Outside Penang, E&O is jointly developing The Peak in Damansara Heights with Mitsui Fudosan. The RM369 million project comprises 54 exclusive freehold residences adjacent to the National Palace and is expected to be completed by December 2025. On E&O’s balance sheet, shareholders’funds rose by RM48 million during the quarter, while net gearing remained stable at 0.63 times. The group reaffirmed its sustainability agenda, with Senna and Fera Phases 3 and 4 recently awarded the GreenRE Platinum Provisional Certification. Kok said the recent disposal of land parcels in London aligns with the company’s strategy to preserve capital value while strengthening its balance sheet through the realisation of cash resources. “This prudent move enhances the group’s financial flexibility and better positions us to capitalise on future growth opportunities.” The property developer posted a 21.1% jump in net profit to RM45.4 million for the quarter ended June 30, 2025 (Q1’26), from RM37.5 million a year earlier, lifted by stronger contributions across all segments, particularly residential and commercial property develop ment as well as its investment portfolio. Revenue rose 10.8% year-on-year to RM183.5 million from RM165.7 million in Q1’25, underpinned by sales and progress at ongoing projects. The company said the property segment remains the main growth driver. The segment recorded a revenue of RM157.1 million, a 12% year-on-year increase, and accounted for 86% of group revenue. Operating profit rose 9% to RM57.4 million. For the hospitality segment, revenue and operating profit increased by 6% and 10%, respectively, underpinned by higher average room rates and occupancy rates at the E&O Hotel in Penang. - by HAYATUN RAZAK

o Group declares interim cash dividend of 30 sen

KUALA LUMPUR: Kerjaya Prospek Bhd expects contract awards to regain momentum once the government issues clear guidelines on the Sales and Service Tax (SST), following a slowdown over the past one to two months. Chairman Datuk Seri Tee Eng Ho ( pic ) said the group remains confident of securing “a few hundred million ringgit” worth of new projects this year, but uncertainty surrounding the implementation of SST has led developers to defer awards. “The SST is now the main issue. That’s why over the past one to two months, we’ve seen a slowdown in project awards, especially for mixed developments on the commercial side,” he said during Kerjaya Prospek’s second-quarter FY2025 (Q2’25) analyst briefing yesterday. Tee noted that initially, the authorities appeared to suggest that the 20% SST rate applied only to commercial projects. “They said to charge everything, but the Customs was still unclear. Even as of last Thursday, there was no clarity, and the issue remains unresolved,” he said. As a result, developers such as Eastern & Oriental Bhd (E&O) have been holding back on awarding projects until there is clarity on how SST will affect costs. “The government must issue clear guidelines, hopefully within the next few days. They had promised clarity by this month, but if not, it should be made clear by next month how they KUALA LUMPUR: Malayan Banking Bhd’s (Maybank) net profit increased to RM2.62 billion in the second quarter ended June 30, 2025 (Q2’25) from RM2.52 billion in the previous corresponding quarter. However, revenue eased to RM17.07 billion during the quarter under review compared to RM17.17 billion previously. Meanwhile, for the six months ended June 30, 2025 (H1’25), Maybank’s net profit rose to RM5.22 billion from RM5.02 billion previously. The increase was attributed to an uplift in non interest income, driven by improved investment and trading income, and a moderation in net impairment provisions. Revenue for H1’25 fell to RM33.95 billion from RM35.51 billion previously. “The group’s net interest income and Islamic banking income increased by RM102.9 million or 1% to RM10.66 billion while insurance/takaful service result increased by RM216.1 million or 33.2% to RM865.9 million for H1’25 compared to the previous corresponding period,” it said. In addition, Maybank said the other operating income of the group in H1’25 was RM4.77 billion, a decrease of RM333.2 million or 6.5% from RM5.11 billion in H1’24, mainly due to unrealised mark-to-market loss on revaluation of financial liabilities. Maybank said the group s overhead expenses recorded an increase of RM277 million or 3.8% to RM7.52 billion for H1’25 due to higher personnel expenses, higher marketing expenses and higher esta Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

From left: Maybank chairman Tan Sri Zamzamzairani Mohd Isa, president and group CEO Datuk Seri Khairussaleh Ramli and group chief financial officer Shafiq Abdul Jabbar at a media briefing on the group’s financial results yesterday.

aimed at intensifying customer centricity and accelerating digital and technology moderni sation to solidify its regional presence. “The volatility and uncertainty surrounding potential trade disruptions, however, may have an impact on the growth and performance of the group, as a result of slower economic growth, a ‘wait-and-see’ stance in investments and capital raising activities, and from financial markets’ volatility. “Barring any unforeseen circumstances, the group has set a headline key performance indicator of return on equity of greater than or equal to 11.3% for the financial year 2025,” it added. – Bernama Seri Tanjung Pinang and other Penang-based projects. Looking ahead, Tee said Kerjaya Prospek is actively seeking new landbanks, with potential acquisitions worth several hundred million ringgit under consideration. “Landbank deals are still coming. We can still buy a few hundred million ringgit worth of land.” He added that development projects typically deliver stronger profitability compared to construction, though both segments remain critical to the group’s growth. “Development can still bring better margins, much better. But we need construction to grow as well, both,” he said. Tee emphasised that Kerjaya Prospek’s strong cash flow enables it to reinvest while continuing to reward shareholders. “If in one year we can pay RM150 million in dividends and in another year generate RM200 million in profits to reinvest, we can secure even more in the future,” he said. Among projects in the pipeline, the Jalan Puchong development is scheduled for launch in the first half of 2027, with an estimated gross development value of RM800 million. “The Puchong plan, I target hopefully in the first half of 2027. The three plots can generate about RM800 million GDV,”Tee said. In July, Kerjaya Prospek acquired three parcels of freehold land covering three hectares on Jalan Puchong for RM112.8 million. The plots were purchased from Sunrise Bright City and Top Up Properties, with completion of the transaction expected next month.

blishment costs. “The group’s net allowances for impair ment losses on loans, advances, financing and other debts decreased by RM41.5 million or 4.9% to RM807.6 million while net allowances for impairment losses on financial investments decreased by RM13.7 million to RM65.2 million,” it said. Maybank’s board of directors declared an interim cash dividend of 30 sen per share On prospects, Maybank said that, supported by continued economic growth in its home markets, the group will accelerate identified initiatives under its 14 strategic programmes in its final year of the M25+ plan,

Kerjaya Prospek: Jobs will flow again after SST clarity

intend to implement the charges,”Tee said. Tee, who also chairs E&O, said Kerjaya Prospek expects to secure several more contracts from the developer this year, amounting to a few hundred million ringgit. He expressed confidence in the group’s outlook, given that 72% of Kerjaya Prospek’s RM3.9 billion outstanding order book is tied to E&O projects. “So far, all of E&O’s projects have been selling well. With strong partners such as Quark, it should not be an issue. We are confident there will be no problem.” Tee said the group remains upbeat about its long-term prospects, highlighting the Andaman Island development as “a very good area”. “But beyond Andaman Island, E&O still has other projects in the pipeline,”Tee said, hinting at more developments. The current order book of RM3.9 billion includes large-scale works in Andaman Island,