PETALING JAYA: Hua Yang Bhd expects the property industry to continue to be challenging, with tight liquidity and subdued consumer sentiments.

It has seen its net profit for the first quarter ended June 30, 2016 fell 20% to RM23.9mil from RM29.89mil a year ago due to lower sales achieved.

Meanwhile, revenue for the period fell by 10% to RM127.96mil from RM142.57mil last year.

In a filing with Bursa Malaysia, the property developer said its total unbilled sales at the end of the quarter under review stood at RM410.07mil while earnings per share stood at 9.05 sen.

However, Hua Yang, which is involved in building affordable housing, remains positive on its prospects for the financial year ending March 31, 2017.

Yesterday, the group also proposed to undertake a bonus issue of 88 million new ordinary shares of RM1 each on the basis of one bonus share for every three existing shares.

The bonus shares are based on Hua Yang’s issued and paid-up capital of RM264mil, comprising 264 million shares.

Hua Yang said its issued and paid-up capital would increase to RM352mil upon completion of the bonus issue.

The company expects the exercise to be completed in the second half of this year.

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