Hua Yang

Hua Yang

Postby winston » Fri Oct 24, 2014 8:35 am

not vested

Hua Yang net profit soars By: NG BEI SHAN

PETALING JAYA: Hua Yang Bhd’s second-quarter ended Sept 30 net profit more than double to RM25.98mil from RM12.33mil a year earlier on the back of a 38% jump in revenue to RM139.49mil.

Its earnings per share increased 110.07% to 9.84 sen from 4.67 sen in tandem with its net profit growth.

In an announcement, the mass market developer said its total unbilled sales during the period recorded RM17.86mil.

It attributed the significant growth to the steady construction progress from all of its on-going projects nationwide.

Quarter-on-quarter, the profit grew 8.94% from RM23.94mil while revenue was up by 2.2% from RM136.47mil.

For the first half, revenue surged 51.84% to RM275.96mil while net profit soared 102.5% to RM42.92mil from RM24.65mil previously.

Its cash and cash equivalent also improved vastly from RM13.73mil last year to RM32.93mil in the six-month period.

“Despite the challenging market conditions, the board remains positive of posting improved results for the financial year ending March 31, 2015 (FY15) based on the group’s pipeline of on-going and upcoming launches,” it noted.

The company also said it had obtained approval from the Securities Commission for a proposed sukuk murabahah programme to raise up to RM250mil in nominal value on April 28.

“Proceed raised from the issuance shall be utilised to part finance the acquisition cost of the syariah-compliant development land and/or such other syariah-compliant properties,” it said.

The stock rose 10 sen or 4.55% to RM2.30 in-line with the broader market sentiment. At current price, the counter is trading at a price-to-earnings (PE) of 5.66 times and a forward PE of 5.97 times, Bloomberg data showed.

Three out of the four research houses covering the counter have “buy” calls on the developer with a consensus target price of RM2.80.

In a recent note to investors, TA Securities said: “Hua Yang is expected to complete Gardenz @ One South (Phase 3, serviced apartments) and Flexis @ One South (Phase 4, SoHo units) in Oct and next May, respectively.”

For FY15, management had lined up several new projects with a combined gross development of RM1.1bil, the research house added.

TA Securities has a target price of RM3.05 based on seven times 2015 earnings as it likes Hua Yang’s strategy to focus on affordable housing, which will shield it from the impact of property cooling measures.

Source: The Star
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