News about E&O subsidiary - E&O Property (3468)

There is an article about E&O Property in this week The Edge paper, with the title - E&O to ride property recovery.
The price targets from Hwang-DBS Vickers speak it all. It ranges from RM2.60 to RM2.85. There is an upside of between 35.8% and 50%, as its current price is RM1.90.
Profit projections from the research houses like JP Morgan and Citigroup are very positive and attractive. As an average, for FY07 - around MYR100mil and its around MYR110mil for FY08. This translates to EPS of 15 sen to 19 sen respectively.
E&o closed at RM1.83 last friday and would be very attractive for value investors to start accumulating it. It is a better way to enter E&O Prop thru E&O in my opinion where E&O has construction arm too - Putra Perdana and hotel operation. One more point to be added, Putra Perdana is operating quite independently from E&O where it does not undertake any major project from E&O. Furthermore, E&O share price is slightly lower than E&O Prop at this moment.