Glomac 2Q net profit up 33.1% driven by key property projects

For the first half ended Oct 31 (1HFY16), its net profit was up 13.5% y-o-y to RM38.6 million or 5.38 sen per share from RM34.02 million or 4.68 sen per share. Its revenue was up 39.5% y-o-y to RM269.05 million from RM192.83 million previously, its Bursa Malaysia filing showed.

In a statement, Glomac said the company’s higher revenues for both the latest quarter and half-yearly period were driven by progress billings in its key ongoing projects such as Lakeside Residences, Saujana Rawang, Glomac Centro and Reflection Residences. The quarter also saw a maiden contribution from Saujana KLIA. The initial phase of Saujana KLIA, comprising terraced houses and shop offices with a total gross development value (GDV) of RM289 million, was successfully launched in FY15 and are almost all sold, said Glomac.

Glomac said sentiment in the property sector has yet to improve, but it believes its strong pipeline of development products and primarily affordable landed residential projects will help it ride through the current challenging climate.

The company will also continue to seek opportunities to further expand its land bank, with its available prime land bank currently worth a total estimated GDV of RM7 billion.

This article first appeared in The Edge Financial Daily, on December 3, 2015. Tap here to subscribe for your personal copy.