Hua Yang posts RM6.47m net loss in 2Q on higher completion and marketing costs

Property developer Hua Yang Bhd fell to a net loss of RM6.47 million in the second quarter ended 30 Sept 2026, reversing a year-ago profit of RM148,000. Revenue rose 15.6% but was more than offset by completion costs for Taman Ara Saujana and higher selling and administrative expenses.

PETALING JAYA (Oct 22) – Property developer Hua Yang Bhd slipped into a net loss of RM6.47 million for the second quarter ended 30 Sept 2026 (2QFY2027), despite higher revenue. The loss compared with a net profit of RM148,000 a year earlier, while revenue rose 15.6% to RM17.46 million from RM15.11 million, according to its Bursa filing on Wednesday (Oct 21). Loss per share stood at 1.48 sen, against earnings per share of 0.03 sen previously. No dividend was declared.

Hua Yang attributed its property development segment’s weaker performance mainly to additional costs incurred to complete Taman Ara Saujana in Dengkil, alongside higher sales, marketing and administrative expenses. The segment recorded a pretax loss of RM5.14 million, compared with a pretax profit of RM106,000 a year earlier, although revenue increased 4.4% to RM12.85 million from RM12.31 million.

At group level, gross profit fell 52.3% to RM3.01 million from RM6.31 million. Selling and marketing expenses increased to RM1.46 million from RM829,000, while administrative expenses rose to RM5.87 million from RM4.49 million.

Revenue from other operations rose 64.5% to RM4.61 million from RM2.80 million, but pretax profit fell to RM169,000 from RM280,000. These operations include commercial property rentals under build-operate-transfer concessions with local authorities, a franchised laundry outlet and building materials trading.

For the six months ended 30 Sept 2026, Hua Yang posted a net loss of RM9.51 million, compared with a net profit of RM859,000 a year earlier. Revenue declined 18.9% to RM27.46 million from RM33.86 million. On a quarter-on-quarter basis, the group’s pretax loss widened 77.5% to RM4.97 million from RM2.80 million, despite revenue increasing 74.6% from about RM10 million.

Hua Yang said it had an undeveloped landbank of 391 acres with an estimated gross development value of RM4.8 billion. Looking ahead, the group said it would carefully evaluate the timing and pricing of new property launches for the financial year ending 31 March 2027, while focusing on cost efficiency and operational improvements.