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Hua Yang 1Q net profit plunges 92.8% due to lesser ongoing projects

KUALA LUMPUR (July 13): Hua Yang Bhd saw its net profit for the first financial quarter ended June 30, 2017 (1QFY18) plunge 92.8% to RM1.72 million or 0.49 sen per share, from RM23.91 million or 6.79 sen per share a year ago, due to lesser ongoing projects on hand.

In a filing to Bursa Malaysia today, Hua Yang reported a 62.5% drop in 1QFY18 revenue to RM47.94 million, from RM127.96 million in 1QFY17.

The property developer said that newly-launched projects like Astetica Residence in Seri Kembangan and Meritus Residence in Shah Alam are still in early stages of construction. Hua Yang’s unbilled sales as at 1QFY18 stood at RM204.31 million.  

Meanwhile, in a separate press statement, CEO Ho Wen Yan said it expects 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 it a total of more than RM1 billion worth of new projects, Ho said.

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.

Ho also expects a more meaningful contribution from associate investment into Magna Prima Berhad.

At market close today, Hua Yang shares closed up 1 sen to RM1.02, for a market capitalisation of RM362.56 million. — theedgemarkets.com

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