Hua Yang 1QFY16 net profit up 24.8% on improved property performance

Hua Yang 1QFY16 net profit up 24.8% on improved property performance
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KUALA LUMPUR (July 13): Hua Yang Bhd’s net profit jumped 24.8% to RM29.89 million or 11.32 sen per share for its first financial quarter ended June 30, 2015 (1QFY16) from RM23.94 million or 9.07 sen per share a year ago, on steady construction progress of all ongoing projects for its property development segment.

Revenue for the quarter rose 4.5% to RM142.57 million from RM136.47 million in 1QFY15.

In a filing with Bursa Malaysia today, the property developer said the property development segment saw a 24% rise in pre-tax profit to RM39.99 million in 1QFY16 from RM32.36 million in 1QFY15, while revenue rose 4% to RM142 million from RM135.9 million.

Its other operations, which consist mainly of rental income from the operation of commercial properties under concession with local authorities, saw a decline in pre-tax profit to RM197,000 from RM218,000, while revenue rose marginally to RM577,000 from RM572,000.

Going forward, Hua Yang said the Board remains positive of posting satisfactory results for the current financial year ending March 31, 2016 based on the group's pipeline of ongoing and upcoming launches.

Its total unbilled sales at the end of June 2015 stood at RM660.8 million.

Hua Yang (fundamental: 1.7; valuation: 2.4) shares closed unchanged at RM1.90 today, with a market capitalisation of RM501.6 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)