Share
KUALA LUMPUR (Nov 30): Glomac Bhd's net profit rose 4.1% to RM18.25 million or 2.53 sen a share in the second financial quarter ended Oct 31, 2016 (2QFY17), from RM17.53 million or 2.45 sen a share a year ago, driven by development progress from its ongoing projects and contribution from the disposal of land.
This was despite revenue falling 42.5% to RM83.99 million in 2QFY17 from RM146.05 million in 2QFY16.
The improved quarterly earnings boosted the group's net profit for the six-month period (1HFY17) to RM103.79 million, up more than 2½ times from RM38.6 million in 1HFY16.
Revenue increased 24.7% to RM335.41 million in 1HFY17 from RM269.05 million in 1HFY16, mainly contributed by the disposal of land and progress billings of key ongoing projects such as its RM1.2 billion Saujana KLIA township, Lakeside Residences in Puchong, Selangor, and Sri Saujana in Johor.
On prospects, Glomac said the environment going forward will continue to be challenging.
"With the disposal of land of RM145.6 million that was completed in 1QFY17, unbilled sales currently in hand and the planned future launches for the current financial year, the group's performance for the financial year ending April 30, 2017 (FY17) is expected to be satisfactory within the current environment," it noted in a filing with Bursa Malaysia today.
In a separate statement, Glomac group executive chairman Tan Sri F.D. Mansor Fateh Din said landed residential at Saujana Perdana and Saujana Utama 5 in Sungai Buloh, Selangor, will also feature among its new launches over the next six months.
"Together, Saujana Perdana and Saujana Utama 5 reside on a 263-acre development land with an estimated gross development value (GDV) of RM1.1 billion as an expansion of our highly successful and thriving Bandar Saujana Utama.
"Initial launch at Saujana Perdana comprises 626 units of affordable double storey terrace houses with an estimated GDV of RM267 million. Pricing at below RM500,000 per unit, marketing efforts have resulted in strong response from potential buyers. Concurrently, Saujana Utama 5 will debut with 33 units of double storey terrace houses with a total GDV of RM24 million," he said.
Mansor said these new launches will serve to replenish its unbilled sales, which currently stands at RM415 million.
"Albeit that the property market overall remains slow, we believe that the group's longer-term outlook remains intact. We have a RM7 billion project pipeline that comprises mainly landed residential and affordable township developments, supported by a solid balance sheet with a low net gearing level of 0.14 times," Mansor added.
Glomac shares closed down 1.37% or 1 sen at 72 sen today, giving it a market capitalisation of RM528.1 million. — theedgemarkets.com
