Glomac sees flattish 1Q profit amid soft property market

KUALA LUMPUR (Sept 17): Glomac Bhd’s net profit for the first quarter ended July 31, 2015 (1QFY16) came in almost flat at RM21.07 million or 2.94 sen a share compared with RM20.85 million or 2.87 sen a share a year ago.

The group’s revenue for the period grew 15.5% to RM123 million from RM106.5 million in 1QFY15, mainly due to steady construction progress in Glomac’s ongoing projects, namely Lakeside Residences, Saujana Rawang, Glomac Centro and Reflection Residences.

In a statement today, group executive chairman Tan Sri Datuk Mohamed Mansor Fateh Din said the overall property sector remains soft, undermined by cooling measures and weaker sentiment brought on by both domestic and global economic uncertainties.

“Nonetheless, Glomac will continue to pace its new launches over the course of the financial year in expectation of improving market environment,” he said.

The group has an unbilled sales of RM737 million and a land bank with a total estimated gross development value (GDV) of RM8 billion.

Glomac has scheduled the majority of its new launches this financial year in 2QFY16. They carry a total estimated GDV of RM802 million.

“Emphasis remains on landed residential projects such as Lakeside Residences in Puchong, as well as five affordable landed townships in Saujana KLIA, Bandar Saujana Utama and Saujana Rawang in Greater Kuala Lumpur, Sri Saujana and a new development Saujana Jaya in Johor,” Mansor added.

The group will release new phases in the Saujana KLIA township later this year, comprising double storey terrace houses with total estimated GDV of RM275 million.

Glomac closed 0.5 sen or 0.58% higher at 86 sen, for a market capitalisation of RM621.2 million.