Hua Yang Bhd has predicted the property market to perform slow and continue to be challenging, due to the tight liquidity and weak consumer sentiments.
The firm’s net profit fell 20% in the first quarter ended 30th June 2016, which is from RM29.89 million to RM23.9 million. This was due to the lower sales achieved. Besides that, the firm’s revenue also reduced 10% compared to last year, from RM142.57 million to RM127.96 million.
Meanwhile, the firm’s unbilled sales for the quarter stood at RM410.07 million and earnings per share stood at 9.05 sen.
Despite the weak performance, Hua Yang remains positive on its prospects for the financial year ending 31st March 2017, due to firm’s high involvements in developing affordable housing.
Yesterday, the group also proposed to undertake a bonus issuance of 88 million new ordinary shares of RM1 each, on the basis of one bonus share for every three existing shares. The bonus shares are based on Hua Yang’s issued and paid-up capital of RM264 million, comprising 264 million shares.
Hua Yang said its issued and paid-up capital would increase to RM352mil upon completion of the bonus release by the second half of this year.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email email@example.com