Glomac 3Q net profit up 3%, declares 2 sen dividend

by **Cals** Thu 19 Mar 2015, 02:09

Glomac 3Q net profit up 3%, declares 2 sen dividend

By Shalini Kumar / theedgemarkets.com | March 18, 2015 : 6:37 PM MYT
KUALA LUMPUR (Mar 18): The net profit of [size=14]Glomac Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) for the third quarter ended Jan 31, 2015 (3QFY15), rose a marginal 3% to RM23.4 million from RM22.7 million a year ago, due to a fair value gain on its investment properties.

Revenue for the quarter was however down 39.6% to RM110.96 million from RM183.72 million in 3QFY14, largely due to the completion of its Damansara Residences at Glomac Damansara as well as other tail-end projects in Bandar Saujana Utama, the group’s filing to Bursa today showed.

It also declared a single-tier interim dividend of 2 sen per share for the current financial year ending 30 April 2015, but said that the entitlement date and payment date will be determined later.

For the nine-month cumulative period, Glomac’s net profit declined 33% to RM57.4 million from RM86 million last year, while revenue slumped 39% to RM303.8 million, from RM501.8 million.

Glomac (fundamental: 1.9; valuation: 1.8) said while the gross profit margin for the quarter decreased from 29% to 27%, its gross profit margin for year to date had improved from 29% to 35%.

“The net assets per share attributable to ordinary equity holders improved from RM1.22 to RM1.27 from the previous financial year end,” it said.

“The directors are of the opinion that the environment going forward will be challenging.

"However, with the unbilled sales currently in hand and the future launches, we are hopeful the Group’s performance for the financial year ending 30 April 2015 will be satisfactory,” it said on prospects.

In a separate press statement, Glomac group executive chairman Tan Sri FD Mansor said sales are expected to pick up significantly in the final quarter of FY2015 as the bulk of new launches of RM822 million targeted for the current financial year is slated for this last quarter.

"Glomac is progressively launching new phases of terrace houses in Lakeside Residences, Puchong with estimated gross development value (GDV) of RM151 million," he said in the statement.

"We also had our maiden launch at Saujana KLIA, with the first phase comprising 284 units of double storey terrace houses with GDV of RM122 million fully taken-up," he added.

The company has strategic landbank with an estimated GDV of about RM7 billion for future launches.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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