Hua Yang records 24.8% jump in net profit for 4Q2010

Hua Yang's HQ at Selayang, Selangor

KUALA LUMPUR: Main Board-listed property developer, Hua Yang Bhd recorded a year-on-year 24.8% jump in net profit to RM3.202 million, while revenue increased by 1.61% to RM27.213 million in its 4Q ended March 31, 2010.

In a statement released on May 24, chief operating officer, Ho Wen Yan said the positive quarterly results were achieved against the backdrop of an overall stronger financial performance for the year ended March 31, 2010.

Ho said the group has surpassed its own internal quarterly budgets in terms of sales and earnings, albeit marginally.

He added that this reaffirms growing market confidence for the community developer, especially within the Klang Valley, since Hua Yang’s increased presence in 2007.

“For the FY ended March 31, 2010, sales were 6% more in terms of units – increasing from 649 to 686 units; and 16% in value – increasing from RM119.70 million to RM139.29 million, compared with the last financial year,” Ho said.

Among the key factors that were instrumental in the group’s improved performance were better sales achieved for development phases with higher gross profit margin and moderate selling prices with steady construction progress recognition, the gradual improvement in the selling price of Symphony Heights, a key residential development in Selayang as well as the reduction in internal operational cost.

The group's earnings per share for the year ended March 31, 2010 was 12.86 sen – 32% higher than the last financial year of 9.71 sen. Net assets per share stood at RM2.19 for the year ended March 31, 2010 compared with RM2.07 as at March 31, 2009.

To date, Hua Yang has over RM1.2 billion worth of completed projects. The company’s main projects are One South and Symphony Heights (Klang Valley), Taman Pulai Indah (Johor) and Bandar Universiti Seri Iskandar (Perak).

Hua Yang aims to be one of the top five developers in the country in five to seven years.

“To achieve that, Hua Yang has to progressively achieve a revenue target of RM500 million to RM600 million annually,” he added.

For the cumulative period of FY2010, the group recorded a slight increase in revenue by 3.5% to RM103.542 million against RM100.043 million in the same period last year.

Net profit soared 31.8% to RM11.477 million in FY2010 from RM8.705 million registered in the same period last year.

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