Hua Yang to sharpen strategies to turnaround FY2021
KUALA LUMPUR, 18 August 2020 – Hua Yang Berhad (Hua Yang), aware of the current subdued property landscape is prepared to push the boundaries to spur property sales, in an effort to solidify its financial performance.
For its first quarter ended 30 June 2020 (Q1FY2021), the Group registered a revenue of RM16.7 million, a decrease from the RM82 million achieved last year.
The quarter under review also saw the Group recording a loss after tax of RM4.9 million, compared with a profit after tax of RM3.7 million achieved in the same period last year.
The lower results were primarily attributable to the sluggish landscape due to the global health crisis.
The Group, nevertheless, remains cautiously optimistic of making its journey back to the black, supported by sharp marketing strategies and product positioning.
“This has indeed been a very challenging period for the Group.
Joe Tan, Chief Financial Officer of Hua Yang
“External pressures and the general ‘wait-and-see’ sentiment amongst potential buyers is certainly bearing down on our earnings. While the measures announced by the Government as part of the PENJANA programme will address some of the issues faced by the overall property market, we believe results will take time.”
“However, staying idle is not an option for us. Affordable housing is all the more relevant in the current climate, and it is our commitment to remain ahead of the curve in this segment.
“On our end, we have started working on implementing innovative marketing campaigns to drive sales. Part of this includes leveraging on technology and repositioning our products to cater better to the market demand.”
Klang Valley leads
For the period under review, earnings per share stood at (1.38) sen (Q1FY2020: 1.05 sen) while net assets per share as at 30 June 2020 was RM1.36 (FY2020: RM1.39).
https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js (adsbygoogle = window.adsbygoogle || []).push({});Total unbilled sales at the end of the quarter under review stood at RM115 million (Q1FY2020: RM201.6 million).
During the quarter under review, Hua Yang’s projects in Klang Valley were the largest contributors to revenue, making up a total of 37%.
This was followed by Penang with 29%, Ipoh (17%), Johor (17%) and Negeri Sembilan (0%).
The Group now has a total undeveloped land bank of 456 acres with a potential Gross Development Value of RM5.2billion, to be developed over a period of five to seven years.
https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js (adsbygoogle = window.adsbygoogle || []).push({});“As we pursue our strategic plans, we will capitalise on inherent opportunities to drive our performance.
“We believe we can weather the economic uncertainties and deliver sustained earnings. We remain steadfast in our efforts to create well conceptualised and innovative homes, in strategic locations, for our target market,” concluded Tan.