Reported in a local English daily. Latest results from a medium sized developer showed that the net margin remains healthy thus far. Hua Yang reported an increase in net profit from RM82.2 million a year ago to RM110.6 million for the financial year ended March 31, 2015 (FY15). Revenue was also up by 14.5% to RM583.6 million from RM509.9 million a year ago. Earnings per share reached 41.88 sen. Total net margin is thus 18.95%. This is actually higher than the recently released results for SP Setia. Read here: First 6 months, SP Setia’s net profit margin at 12.83% Quite a good number and proves that building more affordable homes compared to the more luxurious ones does not mean lower margins. : )
Hua Yang’s CEO Ho Wen Yan also said that the property market for second half of 2015 should recover after the current slowdown for first half which was due to the GST impact as well as tightening measures by Bank Negara Malaysia. Sentiment will improve when the actual effects from these measures becomes clearer. Their next project would be Mines South which is located opposite The Mines Shopping Centre. Total units 568 and gross development value is RM262 million. Dear everyone, another affordable project. Currently, Hua Yang’s landbank stands at 492 acres with a GDV of RM3.3 billion. The majority of its land are in Johor and Ipoh, Perak. It also has land in the Klang Valley and mainland Penang. There are no overseas plans thus far.
I seriously believe that for many years to come, affordable is the way to go. My personal belief is that no matter how established an area is, there is no way that i can go higher than what many Malaysians can afford, even if the property is in Klang Valley. You can choose not to believe me but do note that searching for more affordable new launches are far easier than 2012 or before. In fact, if you do read latest articles about some of the focus areas in theedgeproperty, it is clear that secondary properties remain ‘underpriced’ compared to the newly completed ones. Perhaps it’s the stigma of old properties that is holding everyone back. Or perhaps no one really bothered to look and view more. Focus on having a home to call your own. Current times may be a good time indeed.
written on 9 July 2015
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