|Prop dev cost||175.5||159.5||145.1||142.2||142.0|
|Other Current Assets||180.3||157.0||165.6||162.7||150.7|
|Net Cash Flow||-0.5||2.7||-18.2||-0.4||-21.7|
Its 9MFY15 net profit of RM80.9mil is 82.2% more than previous year's corresponding period.
Sales achieved in Q2 & Q1 are RM110.3mil & RM81.9mil respectively.
Total sales after 9MFY15 is RM342mil, which is RM168mil short of its latest sales target of RM510mil for FY15.
Recent history suggests that Huayang kept its words by accomplishing mission impossible in achieving FY14 total revenue of above RM500mil.
Can Huayang do it again this time?
It certainly looks tough as RHB analyst reported that Huayang's sales performance of its newly-launched high-rise projects in FY15Q3 (Oct14-Dec14) is very discouraging.
Property market sentiment is poor and loan rejection rate is high at the moment.
Final phase of One-South with GDV RM195mil has just achieved 20-25% sales for units launched in Q3FY15, while Citywoods (GDV RM216mil) has only 11% take-up rate since launched in Sep14.
As its Q3 sales and unbilled sales pick up, initially I thought that most of it should be contributed by Citywoods...
So, its more affordable landed properties in Taman Pulai Hijauan & Bandar Universiti Seri Iskandar must be selling well I guess.
Its Puchong West development is expected to be launched soon in 1HFY16.
Sales target for FY16 is set at RM529mil, while it expects its total revenue to reach RM800mil in FY18.
Despite commendable operating cash flow, net debt to equity ratio increases to 0.53x compared to 0.47x in previous quarter as most cash are spent in land acquisition and dividend payment.
In order to increase its RNAV, Huayang needs to increase its total GDV by replenishing its landbank.
I will continue to hold Huayang's shares at the moment, and hope that it can close a good land deal soon.