Update Glomac 1Q profit falls 13.62% to RM20.85 mil

by **Cals** Thu 25 Sep 2014, 01:23

Update Glomac 1Q profit falls 13.62% to RM20.85 mil

Business & Markets 2014

Written by Written by Kamarul Anwar of theedgemalaysia.com

Wednesday, 24 September 2014 18:01

KUALA LUMPUR (Sept 24): Glomac Bhd’s net profit for its first quarter ended Jul 31, 2014 (1QFY15) fell 13.62% to RM20.85 million from RM24.13 million in 1QFY14 due to lower revenue as the property developer has completed the Damansara Residences and is on the tail-end of its Bandar Saujana Utama project.
Earnings per share, according to the group’s Bursa Malaysia filing, was 2.87 sen, compared to the previous corresponding quarter’s 3.37 sen.
“Profits in the quarter under review were underpinned by strong sales in its ongoing projects, namely Lakeside Residences in Puchong, Glomac Centro, Reflection Residences at Mutiara Damansara, as well as Saujana Rawang and Sri Saujana, the company’s integrated township developments in Rawang and Johor respectively,” said Glomac in a press statement.
Glomac’s revenue for 1QFY15 consequently dropped 34.35% to RM106.54 million from the previous corresponding quarter’s RM162.27 million.
As the 1QFY15 revenue’s drop was more substantial than the decline in net profit, Glomac highlighted that it attained a bigger margin in the quarter under review. Its gross margin for the quarter was 39%, up from the previous corresponding quarter’s 29%.
Glomac said it had unbilled sales of RM630 million as at end-July, and has lined up launches comprising niche products and affordable properties.
“More than half of the launches are in landed residential products, primarily new phases of terrace houses in Lakeside Residences, Saujana Rawang, Sri Saujana and Suria Residen in Cheras. The market is also anticipating the initial launch from Saujana KLIA, Glomac’s new RM1.2 billion township within the proximity to KLIA, Putrajaya and Cyberjaya,” said the property developer.
Going forward, Glomac is banking on its portfolio of landed and township projects for its growth momentum beyond the current financial year ending Apr 30, 2015 (FY15).
“With our successful land acquisition in Bandar Saujana Utama and Kulaijaya last year, we now have available landbank with potential gross development value of RM8 billion, where more than 85% will be derived from landed residential and affordable township developments,” Glomac concluded.
At today’s close, Glomac’s counter inched up one sen or 0.86% to RM1.17 with 864,700 shares traded. Its market capitalisation was RM850.37 million.