Logo taken from the company’s website

KUALA LUMPURL: MIDF Research maintains its “buy” call on Eastern & Oriental Bhd due to the company’s positive long-term prospect of Seri Tanjung Pinang phase 2A (STP2A).

The research house said the reclamation work is on-track and first launch of project on STP2A is expected in mid-2019.

Profit recognition for KWAP land sale is expected to boost earnings of E&O in FY18 and FY19, MIDF Research added.

“Balance sheet of E&O has also stabilised with net gearing of 0.59x as at September 2017. E&O is targeting a long term sustainable net gearing of 0.5x.”

MIDF Research maintains E&O’s target price at RM2.37.

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