Friday 29 Mar 2024
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KUALA LUMPUR (July 18): Property developer Hua Yang Bhd registered a decline in earnings of 45.5% to RM1.01 million in its first quarter ended June 30 from RM1.86 million a year ago, owing to higher finance costs.

In a bourse filing, Hua Yang said it recorded higher income tax expense of RM2.42 million for the quarter compared to RM1.14 million last year.

Earnings per share fell to 0.29 sen, from 0.53 sen previously.

Nevertheless, group revenue grew 41.4% to RM66.54 million in the quarter, from RM47.05 million before.

In a separate statement, the group said in the quarter under review, its Johor projects had been the biggest revenue contributor, accounting for 42% of the total, followed by the Klang Valley (28%), Ipoh (13%), Penang (11%) and Negri Sembilan (6%).

Hua Yang chief executive officer Ho Wen Yan said the group's focus in FY19 will be on driving new sales to improve earnings visibility and to deliver an overall improved performance, while paring down inventory.

"We have plans to roll out new launches with an estimated total GDV (gross development value) of RM284 million in FY19. This is in addition to the RM762 million of current ongoing projects, giving us a total of more than RM1 billion GDV across our key regions.

"We expect the year ahead to remain challenging, but we are optimistic that the group will remain resilient over the long term, building on our strong foundation. We will continue to tighten our operational efficiencies and pursue opportunities for growth in order to deliver sustainable results moving forward," he said.

The group's total undeveloped land bank stands at 466 acres with a potential GDV of RM5.3 billion.

Hua Yang closed unchanged at 46.5 sen, for a market capitalisation of RM163.68 million.

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