Hua Yang 2Q net profit up 10.4% at RM28.69 mil

KUALA LUMPUR (Oct 21): Hua Yang Bhd's net profit for the second quarter ended Sept 30, 2015 (2QFY16) grew 10.4% year-on-year to RM28.69 million or 10.87 sen per share from RM25.98 million or 9.84 sen a year ago due to better performance from the property development segment.

Revenue for the quarter increased 8% to RM150.62 million from RM139.49 million in 2QFY15, its filing with Bursa Malaysia revealed today.

For the cumulative six months (6MFY16), its net profit increased 17.4% to RM58.58 million or 22.19 sen per share versus RM49.92 million or 18.91 sen per share in 6MFY15.

Revenue for the period came in 6.24% higher at RM293.19 million from RM275.96 million in the previous corresponding period.

Commenting on this, Hua Yang chief executive officer Ho Wen Yan said the group's total unbilled sales stood at RM607.2 million as at Sept 30, 2015 and it has a total undeveloped land bank of 471 acres with a potential gross development value of RM3.4 billion.

"Given the challenging operating landscape, our improved results were primarily attributed to our focus on delivering quality and affordable homes to Malaysians while, at the same time, managing development cost effectively and efficiently," he said.

Ho said the group intends to continue to concentrate on the affordable homes segment, especially within vibrant urban centres throughout the country.

"Demand is expected to outstrip supply, and our proven competencies in this segment will enable the group to create sustainable value for both our shareholders and stakeholders at large," Ho added.

Despite the challenges faced by the property industry, Hua Yang remained positive about posting satisfactory results for the remaining financial year ending March 31, 2016 (FY16).

Shares in Hua Yang closed five sen or 2.84% higher at RM1.81 today, for a market capitalisation of RM467.28 million. -- theedgemarkets.com