Glomac Q1 net profit triples to Rm3.46mil

PETALING JAYA: Glomac Bhd’s net profit tripled to Rm3.46mil in the first quarter ended July 31 from Rm1.01mil a year ago, thanks to its cost-saving initiative.

The property developer said revenue for the quarter fell 10% to Rm51.87mil compared to Rm57.6mil previously due to lower sales.

In addition to improved profitability, Glomac said that its efforts to revitalise Glo Damansara Mall are in full swing, with new anchor tenants having signed long-term leases that have increased occupancy to approximately 74%.

Notable new tenants include Samanea Malaysia by LESSOHOME, a premium Home Living Centre incorporating Lazada’s Online Product Experience Centre and Jaya Grocer supermarket together with its Bonjour Garden Café.

In a statement yesterday, the group said it is targeting to accelerate its new property launches in the second half of the financial year ending April 30, 2020 with an estimated gross development value (GDV) of Rm903mil.

“The upcoming launches will remain in the mid-market and affordable segments, whilst the landed residential projects in townships such as Saujana Perdana and Saujana KLIA continue to sustain steady sales,” it said.

Glomac expects the property sector to remain challenging in the near term due to slow wage growth and tight lending policies.

“That being said, the group remains optimistic that the strong portfolio of potential developments with a GDV of Rm8bil puts the group in a good position to continue offering products to the mass market as conditions improve in the future,” it said.

Shares in Glomac closed unchanged at 36.5 sen apiece yesterday.