HO WEN YAN, Hua Yang Bhd chief executive officer
“The latest economic indicators augur well for the Malaysian property market next year.”
KUALA LUMPUR: Hua Yang Bhd expects the current fiscal year to be relatively flat but still profitable despite closing its first half ended September 30 with lower earnings.
The property developer posted a RM2.3 million net profit for its six-month period, compared with RM40.9 million recorded in the same period a year ago. Revenue was RM93.2 million compared with RM230.7 previously.
On a quarter-to-quarter basis, Hua Yang registered a RM584,000 net profit compared with RM17 million recorded in the previous corresponding period. Revenue was lower at RM45.2 million from RM102.8 million previously.
Earnings per share for the quarter under review was 0.17 sen while net assets per share stood at RM1.68, the company said in a statement on Friday.
Total unbilled sales at the end of the quarter under review stood at RM209 million.
“The challenging backdrop has certainly impacted our financial results. While we expect a relatively flat year, we are optimistic of remaining profitable,” said its chief executive officer Ho Wen Yan.
The company has a number of launches with gross development value (GDV) totalling RM380 million for the current financial year.
“This will normalise our profit margins, hopefully, by our next financial year,” Ho said.
Recently Hua Yang launched Parcel One of Oval, which is part of the company’s new township called Elemence in Johor.
The project sits on 1.6ha freehold land and has an estimated GDV of RM41.72 million.
The company is also working on the launch of its serviced apartment project in Puchong, which has an estimated GDV of RM248 million later this year.
“The latest economic indicators augur well for the Malaysian property market next year, which will be driven by strong fundamentals, such as solid economic growth, stable currency, growth in private consumption and investments, as well as the government’ s infrastructure investments.
“We are optimistic that these factors will play a role in positively impacting our financial results,” Ho said.
During the second quarter, Hua Yang’s projects in Johor were the largest contributors to its revenue, contributing 33 per cent. This was followed by projects in the Klang Valley with a 31 per cent contribution, Ipoh (26 per cent), Penang (six per cent) and Negri Sembilan (four per cent).
“We acknowledge the growing awareness in the adoption of technology in property development, particularly the Industrialised Building System (IBS), in the drive towards quality and economies of scale.
“While we have adopted this system for a number of our projects, we foresee implementing this technology for even more developments as we have seen the immense benefits the IBS has to offer,” Ho concluded.
Hua Yang currently has total undeveloped landbank of 190ha with a potential GDV of RM4.5 billion.