Glomac posts lower net profit
KUALA LUMPUR: Glomac Bhd’s net profit in the first quarter ended July 31 declined by 31.97 per cent to RM1 million from RM1.47 million in the same period a year ago.
Revenue plunged 40.13 per cent to RM57.61 million from RM96.22 million, attributed to the completion of certain phases of Saujana KLIA in previous financial year and lower construction activities during the quarter.
However, Glomac, in a filing with Bursa Malaysia yesterday, said its balance sheet remained robust as net gearing improved further to 0.28 times compared with 0.30 time as at financial year ended April 30 2018.
Net assets per share remained unchanged at RM1.38.
The group targets to step up the pace of its new launches to capitalise on improved consumer sentiment brought about by the recent change in the government.
“Upcoming launches in the financial year ending April 30 2019, totaling RM1 billion will remain in the mid-market and affordable segments while landed residential projects in townships, such as Saujana Perdana in Sungai Buloh, in Selangor, and Saujana Jaya in Kulai, Johor, continue to sustain steady sales.”
Glomac said the property sector was expected to remain challenging as slow wage growth and tight lending policies continued to impact sales.
“We are hopeful that the strong suite of mid-market and affordable product offerings will appeal to millennial buyers, which make up the largest first-house buyer demographic.
“The strong portfolio of potential developments with a gross development value (GDV) of RM9 billion puts the group in a good position to continue offering products to the mass market.”
Glomac has launched its integrated freehold residential development, Plaza@Kelana Jaya, in the current quarter.
In a separate statement yesterday, the first block of serviced apartments that was launched early in the quarter has achieved a take-up of 60 per cent.
With a GDV of RM350 million, the project comprises 696 serviced apartment units and 16 three-storey shop offices.
Plaza@Kelana Jaya is strategically located along the Damansara-Puchong Expressway, surrounded by mature neighbourhoods with close proximity to various amenities.
Glomac had secured an international retailer for Glo Damansara Mall, which is expected to increase the mall’s occupancy to 85 per cent from 45 per cent.
The retailer hopes to commence its business operations by early 2019.