Glomac’s 1QFY2024 earnings ease after completion of existing projects without new launches

• Glomac said it achieved higher new sales of RM101 million in 1QFY2024, representing a 94% jump compared to RM52 million recorded in 1QFY2023.

The group also highlighted improvement in its balance sheet, whereby cash and deposits expanded to RM305.4 million as at 1QFY2024 from RM288.8 million as at end-April 2023.

KUALA LUMPUR (Sept 27): Glomac Bhd's net profit dropped 21.5% for the first quarter ended July 31, 2023 (1QFY2024) on lower contribution from its property development business after the completion of several projects, coupled with a dearth of new launches.

Net profit dropped to RM4.06 million or 0.53 sen per share for 1QFY2024 from RM5.18 million or 0.67 sen per share a year ago, according to the real estate developer’s stock exchange filing on Wednesday.

Revenue also declined 8.2% to RM60.11 million for 1QFY2024, from RM65.49 million in the previous corresponding quarter.

For the remainder of the year, Glomac said it is “cautiously optimistic” of an improvement in the property market.

“Despite growing concern over inflation, we can see pickup in sales and stability in labour supply and interest rates,” it said.

In a press statement, Glomac said it achieved higher new sales of RM101 million in 1QFY2024, representing a 94% jump compared to RM52 million recorded in 1QFY2023.

The group also highlighted improvement in its balance sheet, whereby cash and deposits expanded to RM305.4 million as at 1QFY2024 from RM288.8 million as at end-April 2023.

Glomac’s net gearing was lower at 0.12 times against shareholders’ funds of RM1.19 billion.

Net assets per share rose to RM1.55 as at 1QFY2024 from RM1.53 as at end-April 2023, translating to a price-to-book ratio of 0.25 times.

Glomac said it is preparing to launch around RM700 million worth of new projects for FY2024, adding that its current landbank has a potential estimated gross development value of close to RM8 billion.

Shares of Glomac, which has trended upwards 22% year-to-date, closed one sen or 2.6% higher at 39 sen on Wednesday, giving it a market capitalisation of RM312.03 million.

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