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Friday, 14 July 2017

(The Star) Hua Yang Q1 earnings fall to RM1.72mil

PETALING JAYA: Property developer Hua Yang Bhd’s earnings for the first quarter ended June 30 slumped by more than 92% to RM1.72mil from RM23.91mil during the same period a year ago on fewer ongoing projects.

Revenue dropped 62.5% to RM47.94mil from RM127.96mil the previous year, which translated to a lower basic earnings per share of 0.49 sen from 6.79 sen previously.

Net assets per share stood at RM1.70 compared with RM1.69 as at March 31, 2017.

Hua Yang told the stock exchange that apart from fewer ongoing projects, its newly launched projects such as Residence and Meritus Residence were still in the early stages of construction. The company’s total unbilled sales at the end of the quarter under review stood at RM204.3mil.

Chief executive officer Ho Wen Yan said the property market continued to be challenging.

“Nevertheless, affordable housing remains at the forefront of public discourse as demand continues to outstrip supply,” Ho said in a separate statement.

Going forward, Ho said to meet the market’s demand for housing, it would be moving into the affordable segment.

“For the financial year 2018 (FY18), our focus will be on driving new sales to improve earnings visibility. We have plans to roll out new launches with an estimated total gross development value (GDV) of RM322mil in FY18,” he said.

This, he said, is an addition to the RM718mil new projects that were launched in late FY17, giving Hua Yang a total of more than RM1bil worth of new projects across key regions.

During the quarter under review, Hua Yang’s projects in Johor were the largest contributors to revenue, making up a total of 35%, followed by the Klang Valley with 31%, Ipoh (23%), Penang (6%) and Negri Sembilan (5%).

The group currently has a total undeveloped land bank of 468 acres with a potential GDV of RM4.5bil.

He said the group is also expecting a more meaningful contribution from its associate investment into Magna Prima Bhd, as it has started its collaboration to realise the value of its existing prime assets and sustain a longer-term viable development strategy for the company.