Hua Yang Bhd set to launch RM525mil worth of projects for its FY2012

KUALA LUMPUR : Hua Yang Bhd is set to launch more affordable homes in the country as well as plans of expansion to Penang and East Malaysia, its CEO Ho Wen Yan said after the company’s AGM on Friday, Aug 19. In its current financial year ending March 31, 2012, Hua Yang plans to launch projects with a gross development value (GDV) totaling RM525 million.

"There is a strong demand for housing below the RM400,000 threshold as there is more demand than supply in this segment. Demographics, urban migration and other factors augur well for this market.  

"Our strategy is to build vertical communities such as Symphony Heights, Selayang, Parc@One South and Gardenz@One South in urban areas, while building townships outside of the Klang Valley such  as Taman Pulai Indah, Johor and Bandar Universiti Seri Iskandar, Perak," Ho said. 

"We are also looking at expanding our presence to Penang and East Malaysia, with our initial studies revealing that there is a demand for properties between RM90,000 to RM400,000," added Ho. 

According to a statement by Hua Yang, the company is confident of reaching the RM350 million sales mark based on the expected contributions from its operations nationwide.  

"Based on our forecast, projects in Johor and Perak are expected to contribute up to RM150 million whilst the Klang Valley operations will contribute RM200 million in total by the end of this financial year," said Ho.  

For the 1st quarter ended 30 June 2011, the Group registered revenue of RM61.751 million and profit before tax (PBT) of RM15.259 million. Net profit stood at RM11.512 million. In a year-on-year (y-o-y) comparison to the preceding year's corresponding quarter, revenue had grown by 66%, PBT by 126% and net profit by 135%.  

Sales for 1Q FY2012 totalled RM163.8 million - 232% higher than last's year's corresponding period, with an equivalent to 53% of the total sales achieved during the previous financial year.  

The sales performance was attributed to One South at Sungai Besi, which is Hua Yang's flagship development in the Klang Valley. With a total GDV of RM160 million, phase 2 of One South has been 100% booked while over 181 units of Block C, Gardenz@One South were snapped up within two days of the launch at end of July.  

Last week, Hua Yang launched and sold over 80% of the 133 units from the total of 196 units of Block B, the remaining block of Gardenz@One South.  

Ho had also revealed that in this financial year, Hua Yang has announced three acquisitions and that the company is constantly looking into growing its current land bank of 790 acres (which has the ability to generate up to RM2.4 billion in GDV).  

In May, Hua Yang acquired 1.55 acres of prime land in Desa Pandan Commercial Centre for a proposed development of a mixed serviced apartment and commercial centre at an estimated RM160 million in GDV value. 

The company added 3.73 acres of leasehold land in Section 13, Shah Alam for another mixed development with an estimated RM175 million GDV in June. 

Hua Yang had also recently purchased two prime parcels of land totaling 2.1 acres in Johor Bahru for RM 10.7 million. The estimated GDV for the proposed development for service apartments is RM120 million with prices for individual units ranging between RM 150,000- RM400,000. 

The company had also proposed a one-for-three bonus share issue of up to 36 million new ordinary shares of RM1.00 each as well as a gross dividend of 7.5 sen per share-making it the second highest payout its shareholders.  

The entitlement date will be announced later, with the exercise expected to be completed within the third quarter of its financial year. 

With a large volume of unbilled sales - RM370 million (over 80% coming from the Klang Valley projects), the company is set to see strong earnings over the next 2 years. Ho added that the company is set to reach its RM350 million sales target by the end of its financial year ending March 2012.