Glomac to roll out RM627m worth of properties in 2HFY16

KUALA LUMPUR (March 24): Property developer Glomac Bhd said it plans to roll out RM627 million new launches in the second half of the financial year ending April 30, 2016 (2HFY16), where four out of the five planned projects are in the affordable landed residential segment.

“[For one,] new phases in Saujana KLIA [in Sepang, Selangor] comprising 345 units [of] terraced houses with [a] gross development value (GDV) of RM174 million are planned for launch in the immediate future,” it said in a statement yesterday.

It is also set to unveil its Saujana Jaya township development in Kulai, Johor, as well as extension phases of its Bandar Saujana Utama township in Sungai Buloh, Selangor.

Glomac said its near-term financial performance will be sustained by its unbilled sales of RM593 million as at Jan 31, 2016.

“Market sentiment remains soft, but Glomac believes that it is well placed to deliver sustained performance due to our robust pipeline of development products in the affordable landed residential segment,” it added.

The group currently has a land bank of over RM7 billion in GDV.

Glomac saw its net profit fall 15.9% to RM19.68 million or 2.74 sen per share in the third financial quarter ended Jan 31, 2016 (3QFY16), from RM23.4 million or 3.23 sen per share a year ago.

The fall was attributed to recognition of fair value of investment properties in 3QFY15.

Revenue, however, rose 42.5% to RM158.13 million in 3QFY16 from RM110.96 million in 3QFY15 due to continued contributions from projects in Puchong Lakeside Residences, Saujana Rawang, Saujana KLIA, Glomac Centro and Reflection Residences.

It also declared an interim dividend of two sen per share for FY16. The entitlement and payment dates will be determined later.

For the nine-month period, its net profit grew a marginal 1.5% to RM58.28 million or 8.13 sen per share, compared with RM57.41 million a year ago, while revenue climbed 40.6% to RM427.18 million from RM303.79 million.

Glomac shares closed unchanged at 83 sen yesterday, with a market capitalisation of RM608.3 million.

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This article first appeared in The Edge Financial Daily, on March 24, 2016. Subscribe to The Edge Financial Daily here.