Glomac 3Q net profit down 72% as revenue fell

KUALA LUMPUR (Jan 22): Glomac Bhd saw its net profit plunge 72% to RM5.37 million for the third quarter ended Jan 31, 2017 (3QFY2017), from RM19.68 million in the previous year's corresponding quarter (3QFY2016).

Revenue for the quarter dropped 44% to RM87.49 million from RM158.13 million a year earlier, its bourse filing today showed. It declared a single-interim dividend of 1.5 sen for the period, to be paid on a date to be fixed.

The weaker 3QFY2016 notwithstanding, its cumulative nine-month net profit surged 87% to RM109.16 million from RM58.28 million in 9MFY2016, though revenue slid 1% to RM422.9 million from RM427.18 million.

Its income statement showed the year-to-date period registered a 15% lower cost of sales at RM235.71 million, with other operating income jumping near 14 times to RM25.35 million.

"The group recorded lower revenue compared to the previous corresponding quarter. However, revenue is maintained for the corresponding year-to-date mainly due to completion of Glomac Centro and Reflection Residences and tail end projects in Saujana Rawang," said Glomac.

Going forward, the developer said it expects the environment to continue to be challenging.

However, it expects "satisfactory" performance, supported by its RM145.6 million land disposal, which was completed in 1QFY2017; unbilled sales of RM484 million; and planned future launches for FY2017.

In a press statement, Glomac said it has sold of more than 50% of its recently launched RM50 million gross development value (GDV) Lakeside Residences in Puchong. Similarly, the RM107 million GDV Saujana Perdana also saw over 50% sold.

"Riding on its launch momentum, Glomac aims to roll out another RM696 million worth of development products in the current quarter.

"These comprise new phases from existing residential townships, such as Saujana KLIA, Saujana Perdana and Sri Saujana, proven products that continues to appeal to home buyers in the affordable market segment," it said.

Glomac fell 1 sen or 1.38% to close at 71.5 sen, giving a market capitalisation of RM516.92 million. — theedgemarkets.com

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