Hua Yang’s FY2017 profits down 44.8% y-o-y

PETALING JAYA (May 17): Hua Yang Bhd has ended its 2017 financial year (FY2017) with a profit after tax (PAT) of RM60.7 million, a 44.8% year-on-year (y-o-y) decrease from RM110.1 million.

In FY2017, the company recorded a revenue of RM385.3 million compared with RM575.7 million in its previous financial year, reflecting a dip of 33% y-o-y.

For the quarter ended March 31, 2017, the developer recorded a PAT of RM9.5 million, a decrease from the RM21.4 million registered in the preceding year’s corresponding quarter. Revenue was also lower at RM80.7 million compared with RM127.6 million last year.

Total unbilled sales at the end of the quarter under review stood at RM213.8 million.

During the quarter under review, Hua Yang’s projects in the Klang Valley were the largest contributors to its revenue, making up a total of 42%, followed by projects in Johor (33%), Perak (21%), Negeri Sembilan (3%) and Penang (1%).

Despite the reduced profits due to weak market conditions, the developer said in a statement today that it is confident that with a growing middle-income group, the demand for affordable housing will remain intact, which could support the company’s earnings growth in the future.

CEO Ho Wen Yan said despite having registered lower profits, Hua Yang is satisfied with the financial results, given the challenging operating landscape faced by the property industry throughout 2017.

“Demand for affordable housing has remained strong, driven by the growing middle-income group, urban migration into city centres as well as those seeking to own their first homes. Our strategic focus continues to be on affordable housing; thus, our projects garnered positive interest during the year,” he explained.

Besides this, Ho stressed that the company will improve operational efficiencies and maintain a healthy balance sheet.

“All in all, we remain cautious but positive on the group’s prospect for the financial year ending March 31, 2018,” he added.

Meanwhile, the company also proposed a final single-tier dividend of two sen per share, amounting to RM7.04 million, for the financial year ended March 31, 2017. This is subject to the approval of shareholders at the forthcoming annual general meeting.

Hua Yang currently has a total undeveloped landbank of 475 acres with a potential gross development value of RM4.5 billion.