HUAYANG (5062) - RHB Research downgrades Hua Yang to Neutral from Buy
KUALA LUMPUR: RHB Research has downgraded Hua Yang to Neutral from Buy with an unchanged target price of RM2.28 in light of the challenging property market.
In a note on Friday, the research house said take ups for new launches have been slow, and it expects this trend to continue in the near future.
"We also expect Hua Yang to be more aggressive with its landbanking activities in FY16 given its target to replenish up to RM5bil of GDV.
"Management has also indicated that loan rejection rates are higher than last year’s due to more stringent bank requirements.
"We expect take-ups to continue to be slow in the near term due to uncertainties over the impact of the goods and services tax (GST) as well as cautious market sentiments. No new launches are expected in 4QFY15," it said.
It added that as with its other projects, Hua Yang will be targeting to price most of its units at RM500,000 and below. On its landbank replenishment plans, management is still targeting to replenish up to RM5bil of GDV over the next two years.
"Given that it has yet to reach even 10% of its target, we expect the company to be more aggressive in landbanking going into FY16," it noted.
http://www.thestar.com.my
KUALA LUMPUR: RHB Research has downgraded Hua Yang to Neutral from Buy with an unchanged target price of RM2.28 in light of the challenging property market.
In a note on Friday, the research house said take ups for new launches have been slow, and it expects this trend to continue in the near future.
"We also expect Hua Yang to be more aggressive with its landbanking activities in FY16 given its target to replenish up to RM5bil of GDV.
"Management has also indicated that loan rejection rates are higher than last year’s due to more stringent bank requirements.
"We expect take-ups to continue to be slow in the near term due to uncertainties over the impact of the goods and services tax (GST) as well as cautious market sentiments. No new launches are expected in 4QFY15," it said.
It added that as with its other projects, Hua Yang will be targeting to price most of its units at RM500,000 and below. On its landbank replenishment plans, management is still targeting to replenish up to RM5bil of GDV over the next two years.
"Given that it has yet to reach even 10% of its target, we expect the company to be more aggressive in landbanking going into FY16," it noted.
http://www.thestar.com.my
