KUALA LUMPUR, 13 July 2017 – Hua Yang Berhad (“Hua Yang” or the “Group”), a leading property developer in the affordable housing sector, started its 2018 financial year (FY2018) with a profit after tax (PAT) of RM1.7 million for the first quarter ended 30 June 2017, a decrease from the RM23.9 million recorded in the corresponding quarter last year. Revenue for the quarter under review was also lower at RM47.9 million compared to RM128 million recorded a year ago.
Earnings per share for the 3-month period was 0.49 sen while net assets per share as at 30 June 2017 stood at RM1.70 compared with RM1.69 at the end of the 2017 financial year (31 March 2017). Total unbilled sales at the end of the quarter under review stood at RM204.3 million.
Ho Wen Yan, Chief Executive Officer of Hua Yang, said, “The operating landscape of the property market continues to be challenging. Nevertheless, affordable housing remains at the forefront of public discourse as demand continues to outstrip supply. Moving forward, Hua Yang aims to bolster supply in the affordable segment to meet market needs. Affordability to Hua Yang, is offering homes that are price sensitive, in strategic locations and without comprising quality.”
“In the 2018 financial year, 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 RM322 million in FY2018. This is in addition to the RM718 million new projects that were launched in late FY2017, giving us a total of more than RM1 billion worth of new projects across our 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%. This is followed by Klang Valley with 31%, Ipoh (23%), Penang (6%) and Negeri Sembilan (5%).
The Group currently has a total undeveloped land bank of 468 acres with a potential GDV of RM4.5 billion.
“We also expect a more meaningful contribution from our associate investment into Magna Prima Berhad, as we commence our collaboration to realise the value of its existing prime assets and sustain a longer-term viable development strategy for the company,” Ho concluded.
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