Hua Yang 2Q net profit plunges 97% on lower sales

KUALA LUMPUR (Oct 27): Affordable housing developer Hua Yang Bhd saw its net profit plunge 97% to RM584,000 in its second quarter ended Sept 30, 2017 (2QFY18), from RM16.95 million, due to lesser ongoing projects and lower sales.

Revenue dropped 56% to RM45.22 million, from RM102.77 million a year ago, while earnings per share fell to 0.17 sen per share, compared with 4.82 sen per share in 2QFY17.

In a filing to Bursa Malaysia, it said property development segment saw revenue and profit before tax decrease by 56% and 90% respectively, compared with the previous year, due to lesser ongoing projects and lower sales, while newly-launched projects like Astetica Residence in Selangor and Meritus Residence in Penang are still in early stages of construction.

The group also recently unveiled Elemence, its latest township development in Taman Denai Alam, Johor Bahru.

It launched the Phase One of the development, comprising 64 units of cluster homes and two units of link bungalows. It has an estimated gross development value (GDV) of RM41.72 million and sits on 3.99 acres of freehold land.

Additionally, it said total unbilled sales at the end of the quarter under review stood at RM209.04 million.

For its cumulative first half (1HFY18), net profit dropped 94% to RM2.3 million, from RM40.86 million in the previous year. Cumulative first half revenue decreased 60% to RM93.15 million, from RM230.73 million a year ago.

The group acknowledged the outlook for the property sector as being challenging. It said the group takes cognizance and will take steps to improve performance for its financial year ending March 31, 2018 (FY18).

Hua Yang shares closed unchanged today at 83 sen, for a market capitalisation of RM293.92 million. — theedgemarkets.com

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