Glomac’s 3Q net profit surges on higher property development revenue

• The group will remain focused on the affordable and mid-market residential segments, where it has successfully built a strong brand with quality, innovative and digital lifestyle concepts products.

KUALA LUMPUR (March 26): Glomac Bhd’s net profit jumped by over 800% to RM3.81 million for its third quarter ended Jan 31, 2024 (3QFY2024), from RM419,000 a year earlier, driven by higher revenue from its property development and property investment business.

Quarterly revenue increased 35.38% to RM89.35 million from RM66 million last year, the real estate developer said in an exchange filing on Tuesday.

On quarter-on-quarter basis, the group's net profit saw a similar surge from RM483,000 in 2QFY2024, while revenue rose 60.14% from RM55.8 million, thanks to improved sales from its completed projects.

Glomac said it had during the quarter under review launched Allamanda, the latest phase of double-storey terrace houses at Saujana KLIA, with a total estimated gross development value (GDV) of RM35 million.

"The highly successful Saujana KLIA township has continued to enjoy strong take-up rates, with all previous phases of terrace houses and shop offices fully sold. This includes the preceding phase, Primrose which has been completed, and successfully handed over to buyers in January 2024.

"Keys at Lakeside Residences comprises 98 semi-detached houses with a total estimated GDV of RM234 million. The first release of 42 units met with strong interest. New units are expected to be rolled out concurrently," the group added in a statement accompanying its results.

For the first nine months of FY2024, Glomac’s net profit was down 52% to RM8.36 million from RM17.41 million in the same period of FY2023, amid lower contributions from the property development segment and higher finance costs, the group said.

Nine-month revenue slipped 2.22% to RM205.26 million from RM209.93 million.

“Revenue for the period was driven by steady construction activities at the group’s ongoing development projects namely, 121 Residences, Plaza@Kelana Jaya and ongoing phases at Saujana KLIA and RUMA 33 at Saujana Utama 5,” said Glomac.

Commenting on its outlook, the group said that it is cautiously optimistic about improvement in the property market.

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

Meanwhile, the group will remain focused on the affordable and mid-market residential segments, where it has successfully built a strong brand with quality, innovative and digital lifestyle concepts products.

Glomac's share price closed up 1.5 sen or 4.23% at 37 sen on Tuesday, with a market capitalisation of RM296.03 million. The stock has risen 19.35% in the past one year.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!