KUALA LUMPUR (March 25): UK-based investment company Aberdeen Group plc, formerly known as Abrdn plc, has become a substantial shareholder in Eastern & Oriental Bhd (KL:E&O) after increasing its stake to 5.047%, representing 125.66 million shares.

This development follows Aberdeen's acquisition of 124.317 million shares in the Penang-based property developer through three separate transactions last week.

Aberdeen acquired 123.317 million shares on March 19, which would be worth about RM96.45 million, based on E&O’s volume weighted average price (VWAP) of 78.21 sen that day. Subsequently, it purchased another 999,900 shares over the next two days at an estimated cost of RM803,321, based on the respective day's VWAP of 80.14 sen and 80.84 sen.

E&O recorded a 10% year-on-year (y-o-y) drop in its net profit for the third quarter ended Dec 31, 2024 (3QFY2025) to RM30.9 million as higher tax expenses offset an 82% y-o-y jump in revenue to RM167.74 million. The revenue growth was attributed to strong sales of The Lume and continued revenue recognition from other ongoing projects, including The Meg, Fera and Senna.

In 3QFY2025, the group's tax expenses more than doubled to RM12.43 million, largely due to certain non-deductible items.

For the first nine months of FY2025, E&O’s net profit increased by less than 2% to RM98.8 million, largely because unrealised foreign exchange (forex) losses offset a 67% y-o-y revenue increase to RM504.4 million.

The company recorded forex losses totalling RM45 million during the period compared to a RM37.8 million gain in the previous year's corresponding financial period.

During its half-year briefing in November last year, E&O announced plans to launch three significant projects on Andaman Island, Penang, with a combined estimated gross development value of RM1.63 billion.

The group also expressed intentions to expand its land bank, particularly in the Klang Valley. Its land bank portfolio currently comprises 1,107.9 acres (448.4ha) in Penang, 375.4 acres in the Klang Valley and 32.9 acres in Johor, as detailed in its latest annual report.

As of November, the group’s unbilled sales reached a record high of RM1.46 billion, providing earnings visibility through FY2026.

E&O shares closed one sen or 1.2% lower at 79.5 sen, giving the company a market capitalisation of RM2 billion. The stock has fallen 23.4% in the past year.