Another good news from a not so good property market. We should keep noting all these because there are always developers whose products are somehow less affected or even still doing fine. Hua Yang’s pre- tax profit for the second quarter ended Sept 30, 2015 has increased to RM38.2 million versus RM35.2 million in the same period last year. Revenue rose from RM139.5 million to RM150.6 million too. This gives it a margin of 25 percent which is considered healthy. The fact that revenue is increasing is already a very good result especially when there are so many unsold units since last year. Read here: More below RM500k units but unsold units at 78 percent
One major reason for this improved performance according to its Chief Executive Officer Ho Wen Yan was because of their focus on quality and affordable homes while at the same time managing their development cost in effective and efficient manner. Hua Yang added that it still has a total undeveloped land bank of 471 acres (190.6 hectares) with a potential gross development value (GDV) of RM3.4 billion. For the huge developers, this may seem small but I think for Hua Yang, this GDV number is enough as they continue to look for new landbanks. Their previous purchase of a piece of Selayang land was aborted. Read here: I lost a Selayang opportunity by Hua Yang
Actually the current market is an opportunity to developers who are pricing their developments close to what the people see as good value. If the price is low but the product is deemed to be of lower standard, it will definitely affect the sales. Buyers should really buy objectively because slow times do not last forever. Read here:How long can ‘good time’ lasts? Having said that I seriously do think that there are still many developers who are very bullish about the market and are still launching so-called lifestyle products. Perhaps they could identify a target market which I am personally not aware of. Oh yeah, if you are happy with Hua Yang’s performance, you can also think of its stocks too. Happy deciding.
written on 26 Oct 2015
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