KUALA LUMPUR (Feb 8): Property-based company Hua Yang Bhd is confident that net profit for the current year ending March 31, 2012, would be higher than the consensus of RM42 million.
"The consensus for our net profit is RM42 million. I think we should do better than that. It will be a strong year for us," its chief executive officer Ho Wen Yan told Bernama.
He is also optimistic of the company achieving the consensus of RM300 million revenue for the current financial year.
Ho said the strong contributor to profit and revenue for the current financial year would be the One South project in Seri Kembangan.
"One South has been well received with record sales. We have already sold about three phases of its six. The first three phases will be completed by 2015.
"Subsequently, we target to complete the project by 2018," he added.
For the financial year ended March 31, 2011, Hua Yang posted a net profit of RM25.15 million on the back of a RM188.9 million revenue. The company turned in a net profit of RM39.9 million on revenue of RM222.1 million for its nine months to Dec 31, 2011.
Ho also expects a better performance for Hua Yang's financial year 2013 than in the current financial year.
He said revenue for financial year 2013 would also be contributed by the One South project.
"Other projects are starting to contribute as well and over time, we are aiming for half to come from the Klang Valley and the rest from other areas," he added.
He also said that Hua Yang's gearing was still at a very comfortable level at 0.38 times. "We can still borrow, probably for future projects," he added.
Ho also disclosed that the company had wanted to raise RM100 million last year but did not put any plan into place as its operational cash flow was still strong.
"Next year, our cash flow will be stronger. So, we will wait until the time is right to raise capital," he said.
He said the company, established in 1978 in Ipoh, Perak, had been growing steadily over the past 33 years with the focus on affordable homes.
Hua Yang was listed on the main board of Bursa Malaysia in 2002. Although still controlled by the founding family, its is run professionally by a management team.
"We want to grow this company into a leading property development firm in Malaysia. In the affordable home segment, we want to be the market leader and we will continue to focus on this.
"The affordable home segment will remain strong with banks also lending. A lot of young people are looking for affordable homes," Ho said.
Since its establishment, Hua Yang has developed properties worth more than RM1.5 billion.
In the 1970s, most of Hua Yang's projects were in Ipoh. Subsequently, it expanded to Kuala Lumpur with the its first project being Symphony Heights. — Bernama
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