Glomac Q1 net profit sees slight improvement

PETALING JAYA: Glomac Bhd's net profit for the first quarter ended July 31, 2015 (Q1 FY16) improved slightly (1.07%) to RM21.07 million from RM20.85 million a year ago on the back of higher revenue.
Revenue for the period rose 15.45% to RM123.00 million from RM106.54 million a year ago, mainly due to steady construction progress in its key ongoing projects namely Lakeside Residences, Saujana Rawang, Glomac Centro and Reflection Residences.
"The majority of Glomac's new launches in this financial year (ending April 30, 2016) (FY16), with total estimated gross development value (GDV) of RM802 million, are earmarked for Q2 FY16 onwards.
"Emphasis remains on landed residential projects such as Lakeside Residences in Puchong and five affordable landed townships namely Saujana KLIA, Bandar Saujana Utama and Saujana Rawang in Greater KL, Sri Saujana and brand new development Saujana Jaya in Johor," it said in a statement yesterday.
The company said it will release new phases in the Saujana KLIA township later this year, comprising double-storey terrace houses with a total estimated GDV of RM275 million.
Despite the anticipated challenging environment going forward, Glomac expects its FY16 performance to be sustained with its unbilled sales in hand and future launches.
"Overall property sector remains soft, undermined by cooling measures and weaker sentiment brought on by both domestic and global economic uncertainties. Nonetheless, Glomac's strong pipeline of development products that appeal to current demand, and will continue to pace its new launches over the course of the financial year in expectation of improving market environment."
"High unbilled sales of RM737 million will provide near term earnings visibility, whilst Glomac's sizeable prime landbank with total estimated GDV of RM8 billion will sustain the company's longer term performance," it added.