KUALA LUMPUR: Hua Yang Bhd is targeting sales of RM400 million for the financial year ending March 31, 2018 (FY18), banking on new property launches and strategic acquisition in Magna Prima Bhd.
Hua Yang chief executive officer Ho Wen Yan said although the market is quite tough, it hopes the conditions will change towards the end of the year.
"We remain resilient mainly due to our focus as an affordable housing developer. We will be launching a new high-rise mixed project with a gross development value (GDV) of RM322 million at Puchong West, which is slated in October- November this year.
"Puchong West is part of our new RM2 billion flagship integrated residential project, spanning on a 29-acre of land," he told reporters after the company's annual general meeting in Kuala Lumpur, today.
Ho added that Hua Yang is still confident of achieving its FY18 sales target, amid tepid environment in the first-half of the year.
"However, we are hopeful that in the second-half this year, with our new launches, we will be able to recover a huge chunk of sales from it," he said.
On the strategic acquisition in Magna Prima, Ho said the company would capitalise on the opportunity to acquire about 35-acre of prime land, predominantly located within the Klang Valley.
"This strategic investment would enable us to ride on the upside potential of Magna Prima's land, as well as to pursue collaboration for growth on a win-win basis for both companies," he said.
With the completion of the second-tranche acquisition, he said the company has emerged as the single largest shareholder with about 30.95 per cent stake in Magna Prima.
He said Hua Yang would seize the opportunity to collaborate with Magna Prima on a new property project.
Hua Yang has a total landbank of 475-acre spanning across five key regions for future development with an estimated GDV of RM4.5 billion.
"We focus on affordable housing projects primarily in the mainland Penang, as it contributes strong sales growth," he said.
He said projects within the Klang Valley would account about half of the company's future GDV, while 30 per cent would be in Perak, 13 per cent in Penang.
Hua Yang's net profit in the financial year ended March 31, 2017 (FY17) plummeted 44.64 per cent to RM60.93 million from RM110.07 million a year ago.
Revenue dropped 33.07 per cent to RM385.36 million from RM575.74 million previously due to lower in sales and projects come into tail's end.
Ho said the company has different adoption of industrialised building system (IBS) in its property constructions.
"Our project in Ipoh has higher IBS adoption rate between 60 per cent and 70 per cent, while our high-rise project in Klang Valley is a bit lower at between 20 per cent and 30 per cent,” he added.