Glomac earnings increase fivefold in second quarter

PETALING JAYA: Glomac Bhd’S net profit soared fivefold to RM5.59 million for its second quarter ended Oct 31, 2019 from RM1.06 million reported in the previous corresponding quarter due to more ongoing development phases, better performance by the property investment segment and overall administrative cost savings.

Meanwhile, revenue for the quarter rose by 10.3% to RM61.51 million from RM55.76 million reported previously.

According to the group’s Bursa filing, its property development business saw an increase of 12% for the period from revenue contribution of newly launched projects such as Plaza @ Kelana Jaya, Lakeside Boulevard’s shop offices at Puchong, and Saujana Jaya, Johor.

On the other hand, its property investment business saw improvement during the period due to better occupancy rates of Glo Damansara mall as compared to the previous corresponding period.

As at Oct 31, 2019, Glomac’s balance sheet recorded a cash position of RM201.2 million, whilst net gearing improved to 0.26 times against its shareholders’ funds of RM1.1 billion.

Net assets per share amounted to RM1.41.

For the six month period, the group’s net profit saw a four-fold jump to RM9.1 million, from RM2.02 million previously. Revenue however, increased marginally to RM113.38 million, from RM113.37 million last year.

Glomac said that sales momentum is expected to sustain, driven by continuing sales from ongoing projects as well as new launches of terrace houses and townhouses with estimated gross development value of RM213 million at Saujana Perdana in the second half of the year.

“Emphasis will be on driving sales from high rise residential projects such as Plaza @ Kelana Jaya and 121 Residences,” it said in a press release.

As for its future prospects, the group conceded that the property market is likely to remain challenging, and will continue to strategise in introducing suitable products that will appeal to its market segments.

“Longer term, Glomac commands a strong development portfolio with a potential estimated GDV of RM8 billion to accelerate its development activities when market conditions improve.”

source https://www.thesundaily.my/business/glomac-earnings-increase-fivefold-in-second-quarter-YE1655212