Glomac’s Q3 net profit down

> Property developer to maintain focus on mass market

PETALING JAYA: Glomac Bhd saw a 19.8% decline in its net profit for the third quarter ended Jan 31, 2018, to RM4.3 million from RM5.37 million a year ago, mainly due to cost savings from finalisation of costs in Lakeside Residences project in the previous year.

Revenue for the quarter increased 20.2% to RM105.13 million, compared with RM87.5 million in the same period last year, mainly contributed by Saujana KLIA, Lakeside Residences and Saujana Perdana projects.

For the nine-month period, its net profit plunged 92.8% to RM7.8 million, against RM109 million a year ago, mainly due to a one-off profit recognition for the disposal of land in the previous year. Revenue decreased 26% to RM312.55 million, from RM422.9 million previously.

In a statement yesterday, Glomac said it is maintaining its development strategy of focusing on mass-market demand, noting new launches in this segment have been well- received and the momentum is expected to sustain into the foreseeable future.

The group added that it has been selectively pacing its launches, focusing mostly on affordable landed residential and township products to a fair level of success.

Going forward, Glomac said it has a diverse development portfolio that commands a total estimated gross development value of RM9 billion.

“This places the group in an ideal position to potentially capitalise on possible recovery in the property market, accelerating new launches to boost future sales,” it said.

Of the group’s targeted new launches amounting to RM542 million in the current financial year, it said, 90% are landed developments comprising terrace houses, semi-Ds and affordable homes.

Since its debut in the last financial year, Glomac said. it has secured RM240 million in sales from the Saujana Perdana township in Sungai Buloh, comprising mainly terrace houses.

This included the launch of 117 terrace houses earlier in FY18, which was 85% sold within a six-month period, it added.