Hua Yang’s 4Q net profit falls 68% on lower margins

KUALA LUMPUR (May 23): Hua Yang Bhd’s net profit for the fourth financial quarter ended March 31, 2018 (4QFY18) shrank 68% to RM3.07 million from RM9.65 million previously, on lower margins from its property development segment.

Revenue, however, grew 8% to RM86.74 million from RM80.68 million a year ago. Earnings per share came in sharply lower at 0.87 sen per share versus 2.74 sen per share in 4QFY17.

It said total unbilled sales as at March 31 stood at RM178.78 million.

For the full financial year ended March 31, 2018 (FY18), the group’s net profit plunged 93% to RM4.41 million versus RM60.93 million in the previous year, while revenue fell 40% to RM230.69 million from RM385.36 million previously.

Moving forward, the group said the outlook for the property industry remains challenging.

“Though the financial performance could be better compared to the previous financial years, the board is of the opinion that financial performance is the best possible result that can be achieved considering the weak market conditions and subdued consumer sentiments,” the group said in a filing yesterday.

However the board is cautiously optimistic that the company would be able to post better results for FY19, it said.

Hua Yang’s share price has slipped to 45 sen yesterday — the lowest level since January 2012. The stock has fallen 26.2% year to date, and 58% over the past 12 months. — theedgemarkets.com

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