Friday 29 Mar 2024
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KUALA LUMPUR: Tinggian Development Sdn Bhd, a wholly-owned unit of Hua Yang Bhd, is acquiring two parcels of freehold land in Penang, for a total of RM31 million.

The two parcels of land measure 4.9 acres and 3.14 acres respectively, and are located in Seberang Prai.

Hua Yang (fundamental: 1.7; valuation: 2.4) is buying the 4.9 acre piece of land from Goldentime Project Sdn Bhd for RM21.9 million.

In a Bursa Malaysia filing this evening, Hua Yang (fundamental: 1.7; valuation: 2.4) said it proposed to develop 720 units of service apartments and 36 units of commercial shop lots on the 4.9 acre piece of land.

"The proposed acquisition is in line with the Hua Yang group’s objective to expand into mainland Penang," it said in its filing.

The group, which has a niche in affordable housing, expects to complete the first acquisition by the first quarter of the financial year ending March 31, 2016.

Hua Yang said the first site would be turned into a mixed development, with an estimated gross development value (GDV) of RM242.8 million.

Meanwhile, the acquisition of the second parcel is expected to be completed by the fourth quarter of FY16.

"The second parcel will be utilised for a residential condominium with an estimated GDV of RM70.7 million," said the group in a statement.

The purchase of the second parcel of land was not disclosed to Bursa Malaysia as the value of the transaction was below the threshold of materiality for disclosure.

Both the acquisitions will be funded by internally generated funds and/or bank borrowings.

Hua Yang currently has an undeveloped land bank of 494 acres with a potential GDV of RM3.1 billion and along with its latest foray into Penang, is looking for new development opportunities in Kota Kinabalu, Sabah.

Moving forward, the group said the Klang Valley, Johor and Perak region will remain key focus areas for their developments. 

Hua Yang posted a 57% increase in its net profit for the third quarter ended Dec 31, 2014 of RM30.9 million, from RM19.7 million. It's revenue also increased to RM155.5 million, from RM129.9 million a year before. 

Total unbilled sales at the end of the quarter stood at RM733.3 million.

Hua Yang's shares closed unchanged at RM2.19, for a market capitalisation of RM578.16 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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