New property launches to spur Glomac sales
KUALA LUMPUR: Glomac Bhd will more than double its property sales to about RM810 million in the year ending April 30 2018, from RM290 million previously.
Group managing director and chief executive officer Datuk Seri FD Iskandar said this was expected to help Glomac record another positive performance.
He said the company was optimistic of the prospects due to aggressive plans for new property launches.
Last year, it launched RM290 million worth of projects.
“For the past years, Glomac had been quiet in terms of new launches. We only launched about RM600 million worth of projects over two years.
“With the economy improving and our planned launches of RM810 million this year, and also barring any unforeseen global circumstances, we hope it will reflect in another strong growth this year and next year,” he said after Glomac’s annual general meeting, here, yesterday.
FD Iskandar said the launches included Lakeside Residences in Puchong, Saujana KLIA, Saujana Perdana, Saujana Utama 5, Saujana Rawang and Saujana Jaya in Kulai, Johor.
The projects include affordable houses and shops, shop offices, semidetached bungalows, serviced apartments, and terraced houses.
The new launches will start from the second quarter of the current financial year.
Glomac’s fullyear profit grew 37 per cent to RM110.44 million from RM80.93 million a year ago, despite a six per cent dip in revenue to RM581.79 million from RM616.6 million previously.
Its balance sheet also improved, with total cash and cash equivalent rising to RM307.5 million from RM263.8 million a year ago.
This brought Glomac’s net gearing ratio down to a comfortable 0.2 times as at April.
Its unbilled sales amounted to RM573 million to date.
On landbank expansion, FD Iskandar said the company was always on the lookout for the prospects, and was seriously considering to acquire a couple of parcels to add on to its RM9 billion worth of landbank.
“In the last two to three years, land prices had been going up. But for the last six months or so, land prices had stabilised.
“And definitely, as a property developer, we are always on the lookout for suitable landbank. In general, we are looking at where Glomac can make profit for shareholders,” he added.
In a filing to Bursa Malaysia yesterday, Glomac said its net profit dropped 97.5 per cent in the first quarter ended July 31 2017 to RM2.1 million from RM85.54 million recorded a year ago.
It said the decrease was mainly due to a one-off profit recognised for the disposal of land in the previous year.
Revenue in the same quarter dropped 61.2 per cent to RM97.49 million from RM251.42 million. Farah Adilla