KUALA LUMPUR (Jan 23): Developer Hua Yang Bhd reported a net profit of RM5.77 million in the third quarter ended Dec 31, 2018 against a net loss of RM815 million in the previous year, owing to better pricing and marketing strategy.
Earnings per share amounted to 1.64 sen compared to a net loss of 0.23 sen previously.
Revenue improved 37% to RM68.42 million from RM49.91 million a year ago.
In a statement, Hua Yang Chief Financial Officer, Joe Tan, said the group’s strategy is pacing new launches with more emphasis on marketing initiatives to promote new developments, as well as delivering stronger sales in completed and ongoing projects.
Total unbilled sales stood at RM217 million.
In the quarter under review, Hua Yang’s Klang Valley projects were the largest contributors to revenue, accounting for 35%, followed by Johor (32%), Ipoh (16%), Penang (14%) and Negeri Sembilan (3%).
The group currently has 466 acres of undeveloped land bank with a potential gross development value of RM5.3 billion.
For the nine months, net profit spiked nearly fivefold to RM8.68 million from RM1.77 million previously, while revenue jumped 41% to RM199.51 million from RM141.3 million.
“Our strategy in pricing our projects according to the market needs as well as offering attractive packages to buyers, certainly contributed to our results. We most certainly have a long way to go, but I am confident, by continuously analysing the operating landscape and strengthening our business and core competencies, we can achieve our goals,” said Tan.
Hua Yang closed unchanged at 37 sen today for a market capitalisation of RM130.24 million.