KUALA LUMPUR (Oct 3): For value hunters looking for an opportunity “to start taking a position in property counters”,  TA Securities property sector analyst Thiam Chiann Wen recommends Glomac Bhd, reports The Edge Malaysia.

Thiam said Glomac’s RM403 million worth of planned new launches and RM660 million of unbilled sales provide sustainable income to the developer.

Also, the company’s product mix is “skewed towards” affordable landed units in the Klang Valley, which “are more in demand than high-rise, high-end products”.

“The doubling of its sales in the first quarter on a year-on-year basis indicates that its products are what the market needs,” Thiam tells business publication. In the first quarter ended July 31, Glomac’s sales doubled to RM50 million, revealed the report.

The weekly stated that “Glomac’s sales were driven by demand for its projects in Saujana Perdana in Sungai Buloh and 121 Residences in Petaling Jaya” while “unbilled sales could last the group two years, assuming there are no additional sales, which is quite unlikely”.

Still, the Covid-19 outbreak is “the biggest disruption to the economy and will continue to have an impact on Glomac’s sales in the foreseeable future”.

The builder has already reduced its planned launches for FY2021 to RM403 million, compared with the previously guided RM613 million.

It has postponed officially launching the RM1.6 billion Greentec project in Puchong and Rumah Selangorku apartments — valued at RM56 million GDV — in its Lakeside Residences township, also in Puchong.

There are also concerns about its retail mall Glo Damansara which has been losing tenants. The “latest” being the loss of anchor tenant Samanea Group which “used to take up 40% of its net leasable area”.

“Glomac’s ability to secure new tenants at Glo Damansara remains our major concern in view of rising competition from the surrounding suburban malls,” said Wong Wei Sum of Maybank IB Research.

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Read the full report in this week’s The Edge Malaysia

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