KUALA LUMPUR (June 7): Notwithstanding a fall in revenue, Glomac Bhd reported a net profit of RM23.1 million in the fourth quarter ended April 30, 2018 (4QFY18) compared to a net loss of RM965,000 a year ago, mainly on the reversal of provision for foreseeable loss and expenses.

Quarterly revenue shrank 43% year-on-year (y-o-y) to RM92.2 million from RM161.2 million, Glomac’s stock exchange filing showed.

The group’s board recommended a final dividend of 1.5 sen per share in respect of FY18, to be approved by shareholders.

For the full FY18, Glomac’s net profit was down 71% y-o-y to RM30.9 million from RM108.2 million. Revenue sank 31% y-o-y to RM404.7 million from RM584.1 million, mainly because in the year before it recognised a one-off sale of development land for RM145.6 million.

For FY19, Glomac plans to launch more diverse products with a total estimated gross development value (GDV) of RM1.06 billion.

“The focus remains on the mid-market and affordable segments, where the group expects its landed residential products in townships such as Saujana Perdana and Saujana Jaya in Kulai, Johor to sustain steady sales,” said group executive chairman Tan Sri Mohamed Mansor Fateh Din.

Two serviced apartment projects in Petaling Jaya (PJ) will also be launched. One is an integrated freehold residential development, Plaza@Kelana Jaya, with a GDV of RM363 million. The second is the RM266 million GDV Centro V near Bandar Utama, which Glomac aims to launch in the second half of FY19. The project comprises small office home office units and serviced apartments.

While the market remains challenging, Mohamed Mansor said Glomac will be responsive in pacing its FY19 launches.

This article first appeared in The Edge Financial Daily, on June 7, 2018.

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