Hua Yang starts new financial year with strong performance
Jul 18, 2011
Property developer Hua Yang Berhad delivered a strong start to its new financial year with another impressive quarterly performance.
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%.
The company proposed a one-for-three bonus issue of up to 36 million new ordinary shares of RM1.00 each. The entitlement date will be determined later with the exercise expected to be completed within the third quarter of its financial year.
The strong growth in revenue and profits is attributed to better sales achieved, recognition of steady construction progress and the completion of land disposal to Tesco at Hua Yang’s largest project site – Bandar Universiti Seri Iskandar.
Sales achieved at the end of Q1 2012, totalled RM163.8 million – 232% higher than last’s year’s corresponding period and equivalent to 53% of the total sales achieved during the previous financial year.
Chief financial officer, May Chan said, “In term of total sales achieved, the bulk of our contribution was from the Klang Valley, around 77%. The balance stemmed from our developments in Johor, Ipoh and Senawang.”
A major contributor to sales performance was One South at Sungai Besi, which is Hua Yang’s flagship development in the Klang Valley.
Phase 2 of One South, consisting of 2 blocks of serviced apartments with a total GDV of RM150 million has been 100% booked, of which, 50% has been converted into sales with Sale and Purchase Agreement executed and loan approved.
Prospects for Hua Yang augur well in financial year 2012. The company has a sizeable portion of unbilled sales in the pipeline.
“From this quarter alone, we have close to RM372 million in unbilled sales. We expect this to maintain a strong earnings visibility for us as we go forward,” said Chan.
Other recent developments for Hua Yang are activity in the land market.
In May 2011, Hua Yang acquired 1.55 acres of prime land in Desa Pandan Commercial Centre – just minutes away from Jalan Tun Razak and the proposed KL International Financial District (KLIFD).
Last month, Hua Yang secured another parcel of land by auction, 3.73 acres of leasehold land in the vibrant commercial area of Section 13, Shah Alam, near the Shah Alam stadium and the Laman Seri Business Centre.
The Group's earnings per share for the period ended 30 June 2011 was 10.63sen with gearing remaining low at a ratio of 0.32.
May Chan, Chief Financial Officer, Hua Yang Berhad
