HUAYANG (5062) HUA YANG BHD
KUALA LUMPUR: RHB Research has maintained its Buy call on Hua Yang with a target price of RM2.74, it said on Friday.
The research house said that affordable housing players with units priced RM500,000 and below such as Hua Yang, Matrix Concepts and Tambun Indah Land would continue to perform better than its higher-end peers, as the Government has recently announced several key incentives in Budget 2015 that could help to boost home ownership in this segment.
RHB said Hua Yang's net profit more than doubled on-year, as contributions from its new projects started trickling in.
"With more projects to be launched in 2HFY15, management’s full-year newsales target of RM500mil-RM600mil looks achievable," it said.
Total new sales for 1HFY15 were strong at RM192.2mil.
"The new sales growth wasattributed to the new phases of existing projects such as Taman Pulai Hijauan and BUSI as well as from Sentrio Suites.
"Given its slew of pipeline launches in 2HFY15, we believe that management will likely reach its FY15 new sales target of RM500mil-RM600mil. Meanwhile, its unbilled sales remained resilient at RM717.9mil. Net gearing was stable at 0.44 times during the quarter," it said.
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