Glomac upbeat on long-term prospects

PETALING JAYA: Glomac Bhd has cautioned that factors like inflation, the labour shortage, higher interest rates and cost of materials may affect the recovery experienced by the property sector after moving into the endemic phase.

That said, the property developer noted its longer-term prospects remained intact, underpinned by a healthy balance sheet and a strong pipeline of future development projects located strategically within the Klang Valley.

Glomac added its unbilled sales of Rm512mil as at end-july offered earnings visibility and it intends to drive earnings through steady construction progress at its ongoing projects and successful execution of its upcoming launches.

For its first quarter ended July 31, 2022 of financial year 2023 (1Q23), Glomac’s net profit jumped 200% year-on-year (y-o-y) to Rm5.18mil or an earnings per share of 0.67 sen as revenue rose 127% y-o-y to Rm65.5mil.

The better financial performance was mainly driven by the resumption of construction activities following the easing of Covid-19 restrictions and contribution from ongoing projects in Saujana Perdana, Plaza@kelana Jaya and 121 Residences.

The group achieved higher new sales of Rm52mil in 1Q23, as compared to Rm30mil in 1Q22, driven by the full take-up of its shop offices at Lakeside Residences, Puchong as well as firm demand for ongoing township projects at Saujana Perdana and Saujana Utama 5.

Its maiden launch at Saujana Utama 5, namely RUMA33, has all been sold since its launch in late 2021.

Revenue from its property investment segment, mainly comprising rental income, in

the quarter increased 35% y-o-y or Rm1.2mil to Rm4.6mil.

As at end-july, Glomac’s cash and cash deposits were higher at Rm223.8mil, compared to Rm215.4mil three months earlier.

Its net gearing stood at 0.22 times against shareholders’ funds of Rm1.16bil as at end-july, while net assets per share was at RM1.50.

Glomac shares closed unchanged at 28 sen yesterday, giving it a market capitalisation of Rm224mil.